As we are in the NFP window, take a step back and let the market do whatever the market will do.
Even though historically we were expecting a bullish week, we have had anything but so far.
However, it is also common for the markets to pullback prior to NFP and so far the pullbacks are less than 10%. As you know, a 5-10% pullback is not unusual.
Yields are the topic right now which is taking its toll on growth and tech stocks.
We will be sharpening the axe this weekend and looking for the laggards in our portfolio.
I recommend if you want to make any changes, wait until the weekend. At that point, the markets are closed and emotions won’t play a part. However, if you need to take action more immediately, consider reducing the size of the position instead of swinging the axe.
If you really do need to remove a trade, perhaps for margin calls then do so as you can always enter back in later on.
What we are seeing is normal market action that occurs in good trends. You have seen it before and you will see it again so get use to seeing it.
If the S&P 500 enters bear territory, that means it will have declined 20% or more from the highs. The last bear markets was this time last year. Prior to that, we need to go back over 10 years.
Right now, if you are feeling uncomfortable, rest assured many others will be too. You are not alone.
Let’s go trade!