Q: Why is the market selling off? A: Because….

• Posted by Greg Harmon
• on September 4th, 2015

Thursday and Friday were supposed to be easy with the Chinese market closed. What happened? Despite the Chinese holiday the S&P futures took it on the chin in overnight trading. Maybe the holiday means more time to sell US Stocks? Stop kidding yourself. Retail Chinese investors that have been active in the Shanghai Composite and its deleveraging have no idea what S&P 500 Futures are or how to set up an account to trade them.

Growth jitters? That makes sense right, with the GDP print over 3%, and now jobs expected to continue to grow at about 200,000 in August. Maybe it is the Fed tightening debate. This is one point I agree with former Fed Chairman Greenspan on.

So what is the excuse for all the selling? Maybe you are asking the wrong question. Maybe the better question is why do you need a reason to back up the price action? Remember when you were a kid and some other kid challenged your demand to do something? Or maybe you have kids and tell them what to do without giving a reason. When they ask why in either case the answer is frequently one word. Because.

Stop trying to assign a story to the price action. Watch it. Develop a plan. And then react to it.

Get my ebook, Markets for 2015 and Beyond, a long term forecast with all proceeds going to charity.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through August 2015 and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus