Say it with us. WE DO NOT CHASE STOCKS WE LET THEM COME TO US. Today’s market action is exactly why. We think it’s safe to say the monkey flipped the switch today. GS news or not the market was extended and a lot of names were vertical.
When that happens the markets look for any reason to sell off and they got it today with Goldman Sachs. Not to mention Index Options expired yesterday so the big boys were GONE before this even happened today.
So far today has wiped out 3-days worth of gains AND puts the market right back where it was April 6th — hence 10 days of no progress. Like we’ve said time and time again here — stocks fall faster than they go up.
From yesterday’s notes in GMCR: Sure beats buying XLF right here today AFTER it’s just melted up. 
It’s the weekend and we actually have no intention of going long on anything right here as 3 hours of market action does not a pullback make. That in itself is a change in trend as the market has actually been down for more than 2 hours — can you believe it?
We guess those buy the dips day traders that are behind the pump pump pump who get their gains, and sell to those who think we are going to 15,000 finally got bagged today right along with the people who chase buses huh? Meaning they bought the dip today and yet it’s not bouncing. Sounds like a Scooby Doo “RUT ROH SHAGGY” moment if you ask us. At least that’s what we’d be thinking if we were a day trader who bought the dip today at this moment in time.
We’ve also got some trend line breaks to contend with that may be the start of a change in trend, or at the least a healthy pullback.
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