The NASDAQ suffered its second largest loss of the year today and once again there was heavy volume distribution. That marks 6 of the last 11 sessions.
I feel like I am beating a dead horse, but the caution flags were waiving throughout April to take a defensive stance, raise stops, get into cash, and join the sidelines. I can only imagine the psychological warfare of, “the market will bottom soon, we will bounce back” throughout May. We’ve all been there, and it sucks.
As far as where we will bottom, no one knows. All we can do as investors is continue to note possible support areas, maintain a strong watch list, and sit in cash until the market regains its composure.
On a lighter note, tomorrow Facebook (FB) stock debuts, with reports showing the final tally as 421 Million shares at $38 a piece. I will not be trading the stock but I do have it pre-loaded into my TD Ameritrade thinkorswim screen and am eager to watch the intraday action.
As usual there will be no recap tomorrow as it is a Friday, so stay frosty (sharp) out there and have a fantastic weekend!