1. Market gapped down today. The Dow and all indexes are getting hammered. Is it the start of a major decline. A 250 point decline on the Nasdaq. Russell 2000 down 4%, a huge decline. It’s an ugly day. Nick does not believe that we’re going to retest the March lows. It’s all about election insanity. We don’t want to fight the trend, but when volume kicked up on the downside, Nick knew it was heading lower. Nick took a short position. Caution is the by-word for the upcoming election. The political environment is unprecedented. The Robinhood Traders were the ultimate tip-off. A lot of insider selling. When we have market volume, it goes up, when it’s high it’s been going down.
2. Well below the 50 day moving average on the semi-conductors.
3. Gold and silver also getting slammed. Gold inflates with the market and deflates with the market. As long as we don’t go through some major technical levels, we should be fine. The odds were favorable that this was going to happen. Nick’s been around a long time and he saw it coming. “Human nature never changes, therefore the market never changes.” You don’t make money on FOMO. Nick hopes it will be down by the election.
4. Patience is the key to successful trading.