By: Scott Redler
We hope that no one was caught off guard by today’s sell off. While the “analysts” keep blaming Alcoa (AA) for today’s sell off, the signs were there even before Alcoa reported earnings. Yesterday at around this time, we recommended to clear out of some longs and today the market confirmed our caution. When the market marches up without a pullback, you get pent up selling demand. Amazon (AMZN) is now lower than its 50-day moving average and Google (GOOG) is below its reactionary low from Friday.
Now it’s time for traders to get flexible. Either pair off some longs by selling calls, or even get flat and test out some shorts.
