Market Breakdown – This Wave of Selling Should Test SPY $207

Posted 9:30 AM ET - I am going to be busy trading so I don't have time to write my normal market commentary. I decided to post some of my chat room comments. I will be giving members play-by-play analysis and we are going to find some great trades. Pete: GOOD MORNING!!!!!!!!!!!!!!!!!!! We actually have a breakdown. I am excited   10-13 07:49 Pete: China's exports were down 10% and imports were down 1.9%. That was weaker than expected. Is that why the market is selling off? No We were below technical support at the 100-day MA and the Fed still left room open for a Dec rate hike Nov is even possible, but there is no way they will do it before the election   10-13 07:51 Pete: Traders are more concerned with the here and now. This is why I was surprised at the initial FOMC rally in Sept We are clearly below support and this will attract additional selling WE NEED TO SHORT ANY BOUNCE OR RALLY THIS AM We may not get much of one. Shorting weak stocks will be the way to go this morning FOCUS ON STOCKS THAT ARE NOT "TOO FAR OUT OF THE GATE" that means they are just breaking down and they are not down huge on the open   10-13 07:53 Pete: we want stocks that have the potential to drift lower all day stocks that gap down big can be considered on a bounce and compression   10-13 07:59 Pete: i will short a few stocks early if I can find ones that are just getting started I WILL NOT SHORT ANYTHING THAT HAS BEEN IN A FREE FALL AND IS DOWN BIG ON THE OPEN   10-13 07:59 Pete: we want stocks that are just starting to roll over at the top of their range if the market probes for support and bounces I will short futures when the bounce stalls if the market keeps drifting lower without any bounces I will stick to shorting stocks   10-13 08:02 Pete: REMEMBER THIS!! WE WILL MAKE SOME MONEY ON THE WAY DOWN TO THE 200-DAY MA, BUT THE BETTER MOVE WILL COME ONCE THE CAPITULATION LOW IS IN WE NEED TO BE PATIENT AND WAIT FOR THAT RALLY. THAT WILL BE OUR CHANCE TO MAKE SOME GREAT MONEY   10-13 08:06 Pete: we have been calm and calculated to this point. we will not abandon that just because we finally have a breakdown   10-13 08:06 Pete: i still view this as an attempt to get something going China's exports were down.... big deal. that is one number and it is not a trend the Fed might/might not hike in Dec.... big deal they left room open not to hike according to the minutes. I think they will hike   10-13 08:08 Pete: this is just a normal round of selling and we have about 50 points of downside potential from here i have seen the S&P do that in one day so this is not a monumental collapse the downside is pretty contained   10-13 08:10 Pete: ideally, we get some nice selling pressure in the next couple of weeks that gives us something to lean on instead of this herky jerky back and forth action this drop will result in increased activity and that is fantastic. Favor the short side and be calm If you have not taken my free trial to the chat room, this would be an ideal time. . .

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