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Markets Turn Red

The markets saw the worst down day since July 2nd. After gapping down this morning, the markets made a push up, only to trade sideways for most of the day, until a late push down.

The Dow closed below the Daily 20EMA which is at 9145 and the SPY also closed below the daily 20EMA.  Many believe that this may be the start of the pullback, while others just see this as a great opportunity to get back involved.  After the large move from the lows of March, we can only expect a pullback, however, even today most short trades did not follow through and we needed to book profits, before they disappeared. We will continue to monitor relative strength in the stocks we trade and trade in the direction of the order flow. Knowing that is the end of August and with volume light, we will be much more selective on our entries

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