Still within the Lines…..
As violent as current reactions have been, stocks are still within the boundaries of the recent trading range. Ranges get established by just this kind of market action.
Stock averages periodically test or modestly break through both the bottom and the top of the range, but soon return to trade within those boundaries; so far so good. What may be more important is what sectors and companies are doing.
Performance leadership can change during these sell-offs. We want to use these periods to get better aligned with where money can be made and reduce where risks are increasing. Downturns happen, we simply want to make the best of them. So far, the trading range is holding. We are managing accordingly. Stay steady, my friends.
El Solo Toro