Market Enters Correction

Hey Traders, The Nasdaq will open lower again pushing the correction to approximately 11% from peak. [>>SEE CHART]( So far the correction has blow through 2 potential support levels and the next one is all the way down to 8400-8500 which is around the 200 DMA. This correction seems like almost a mirror image of what happened in late January 2018. The Nasdaq went on a long run then got really steep at the end. At the top the Nasdaq got a whopping 7% above the 50 DMA (just like now) and then it dropped like a lead balloon finding a reversal at the 200 DMA. Will history repeat itself? I don't know but it looks pretty similar. Right now only 7% of stocks in the S&P 500 are above the 20 EMA. If you look at [THIS CHART]( you can look at all the sectors and there are none that are showing strength. The only sectors that have really held up this week are commodities and bonds. Currently only 46% stocks in the S&P 500 are above their 50 DMA. The breadth hasn't been this low since June of last year although if today is ugly we will under cut that. What to do? The hardest thing to do is nothing. It's best to sit on your hands, be patient and wait for some kind of signal or bullish reversal than keep trying to pick bottoms. However, I would like to remind you that the strongest rallies come out of ugly markets. Make sure you dont fall asleep at the wheel or think the sky is falling because you will miss a buy signal or think it cant work due to all the ugly headlines. I was quite amazed how much relative strength Cloudflare Inc (NET) is showing right now. Yesterday the stock was up 8.9% on huge volume as the stock briefly hit an all time high. I think this one has the potential to be a big winner. One to keep your eye on.. Sincerely, Steven Cawiezell steven@thetradersplan.com Extra Resources: 1. Catch my weekly training webinar on our blog: [( 2. List of all our products and services: [( 3. Watch my top Retirement Income Strategy (updated with Performance Guarantee) [( Dislosure You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We recommend ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do you own research before buying any recommended securities. 125 Dawn Circle Russellville AR 72802 USA [Unsubscribe]( | [Change Subscriber Options](