Friday’s tech savaging continues today. The NASDAQ has already dropped almost 5% from high to low in just two days.
The size of the move on Friday combined with the heavy volume suggest that this is a major high for the index. We are seeing other sectors, such as consumer staples and utilities rallying sharply as investors move from tech to safe havens.
I liquidated nearly all my tech position by Monday and will wait until I think of investing in this sector soon from a position perspective.
But, as a swing trader, I’ll be buying Facebook (FB) if it closes higher on the day. Right now, as I write this, we are seeing an initial plunge but now FB is rallying sharply. This type of price action usually leads to a pop to the upside that is very traceable and I look to make some money. I’ll be taking profits of about $4 per share at about 151.00.
This swing trading style is the subject of a free video training I just posted. You can watch if free by clicking here.