Last week, I mentioned how the S & P 500 had reached
it’s objective of 2,000 and proposed the question
of where do we go from here?
The S & P 500 has started to pullback a bit. In fact,
today it is down 3.91 as I write this, after dropping
Friday about 12 points.
When a major level is reached in the market, it is not
uncommon to see a pullback. Or consolidation at
the very least.
Since the first close above 2,000 back on August 26th,
that is precisely what has happened.
And at this point, there maybe some more room on
the downside before the markets hold and try and
make a move back up.
So, at this point, there does not seem to be major
damage happening in the large cap stocks.
Unlike the NASD composite.
As I write this, the NASD composite is down just over 57
points. And the QQQ is down 1.15.
The most damage is being done to the high flying
Stocks like TSLA, which is down over $26 or over 9%.
LNKD is down $16.68 or over 7%.
Facebook is down $3.58 or just under 5%.
Netflix is down over $17 or 3.6%.
It seems like there is a mad exodus for the door
out of these high flyers.
Remember, the stocks that run up the most will
make big moves to the downside when the
Take Tesla for example. TSLA broke out in 2013
at around $41 per share.
Since that time, it hit a high of $291 at the beginning
That is a 600% gain in a short period of time.
And if you were fortunate to have bought TSLA
when it broke out, you had to start thinking of
booking your profits.
Even Facebook had a 250% gain since it broke out
in June of last year.
That is a 250% gain in one year. You have to start
thinking about booking those gains, because after
large moves like that, they can drop just as fast.
Last week I mentioned where support could be for
the S & P 500, so I will not rehash it today.
However, I will share where possible support could
be for the NASD composite and the QQQ.
For the NASD Composite, I would expect the
4,414 level to be a key support line.
And the QQQ, 93.75 would be an area of support.
Monitor these levels and see if they hold.
Just a quick update on our Friday Trade Group.
Last Friday, one of the members booked profits
of $2,300. This is on top of the $1,660 he made the
And the week before that, he made $2,200.
So, in three weeks, this gentlemen earned over $6,000.
And I know he did not need a large account to do
He learned this strategy by being a member of
the Fusion Trading System.
I trust and hope you have a system to help you
book those kinds of weekly profits.