The market finally showed a bit of weakness on Wednesday. To top it off, Apple fell hard after-hours after reporting. This could finally be the start of our long-time coming correction.
Apple makes up a good percent of our TQQQ long trade so it's definitely going to affect us. There's almost no doubt in my mind the MTT will go negative and we'll exit our trade.
The next thing we'll watch is how much of a correction we receive. We'll monitor the long-term indicator to see if it flips to a sell. It it does we'll exit our 401k positions with some nice gains for the year.
We're only a little ahead of the S&P 500 for the year but our real advantage will be when the market turns and we stay out or go short. We should add a little to our gains while the S&P will lose most of the gains it made. This is exactly why the buy & hold mentality is completely wrong. When all signs are pointing down there's no reason to stay invested.
I'm getting ahead of myself... let's concentrate on tomorrow. Let's see if the market can recover from Apple and have a decent day.
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