Behold the Market Attitude Adjustment

Over the past two weeks, there’s been a decided attitude adjustment in the equity markets. Sellers have stepped in and taken their profits off of the table, and the sell-off now has pushed the S&P 500 Index down to its short-term, 50-day moving average. 

If we look at the chart below of SPX, we see that the trend line higher that started in March actually has begun to wane. The bright blue trend line I’ve drawn here represents the upward trajectory of this market over the past eight months. As you can see, we finally have started to come back down off of that trend line. What this means is that we could be in for a protracted struggle between buyers and sellers during the next several weeks. It also could mean that we are finally starting to see this market turn bearish. 

If we see this market break below SPX 1,025, it could mean some very tough times ahead for stocks. If this happens, you’ll want to be prepared — but how do you prepare yourself for a sharp market decline?  

First, make sure you have stop-loss orders set on every equity position that you own. Second, make sure that you have a few inverse funds at your disposable. I am speaking of investment vehicles that move higher when the broad market indices are in decline. Finally, don’t come to the equity party without a plan. When it comes to your money, don’t play the guessing game. You need to have a plan in place that lets you know when to be in stocks, and when to avoid them.

All of these aforementioned principles are alive and well, and operating beautifully in each of my investment advisory services. In fact, right now, subscribers to my Successful Investing , High Monthly Income and ETF Trader advisory services have stop losses on nearly all of their invested positions. In one of these services, we are holding several positions that are making us money even as the market continues wallowing in the red. 

If you want to find out how you can protect yourself with a sound investment plan, and if you want to make money even when Wall Street runs for the exits, then I invite you to check out all the Fabian investment advisory services.