Market Indices Take a Dip

Although all of the major market indices were down at least 2%, only the DJIA was down on average volume. The NASDAQ and the NYSE were down on below average volume. One thing that all the indices have in common is that they are treading on thin water. Another slip up and the majority of the indices will close below their 50 day MA. If they do (and on above average volume), then look out below. I would not be surprised if we retest the mid-March lows. If we find support their, I will most likely cover my short positions and go long for a bit. If we fail to hold support then it will be time to short again. Short term strategies such as these are helpful. The current market conditions do not warrant a longer-term plan. I will be fully long again once the markets truly bottom. This could take anywhere from a few weeks, months or several years. In between that time there will be plenty of short-term opportunities to make some quick gains. The important thing is to keep a clear, level head and open mind. The returns/gains will surely follow.