Just wanted to touch base after a tough day for most stocks.
Yesterday, the S&P 500 ended the session down over 3% while The VIX, also known as The Fear Index, spiked 45%.
So on a day that many investors (and the media) are panicking… I want to remind you that what we’re seeing today is normal. Markets have been going up for a while and were due for a pullback, which I’ve mentioned the past few weeks.
And as I’ll get into in the video below, yes the coronavirus sparked the selloff, but the intensity of it has to due with how overbought most stocks are. Even with today’s market action, the S&P 500 is still up 19% over the past 12 months.
So what do I recommend on a day like this? To take a deep breath and relax.
This isn’t the time to get emotional. Don’t get thrown off by a few bad days in the market, stick to your systems and keep your composure.
This is when great traders make the most money and emotional ones lose it.
With that in mind, let’s recap what’s happening right now and take a look at important support levels.
P.S. If you want to learn how to be more nimble in this market, you might want to check out what this trader is doing.
It’s a 24-hour strategy — the goal is to get in right before massive moves and walk away with a nice gain one day later. You spend less time in the market… which is one of the easiest ways to reduce risk.