The Market Broke Today

Don Kaufman here. 

Please stop trying to attach a story to today’s sell-off. 

You know what a story is? It's what you tell a child.

I watched the market tank Friday while home builders went green. Consumer staples rallying. Healthcare positive.

Most analysts will spin you tales about defensive rotation and smart money positioning.

It's bullsh*t.

You wanna know what I see? Musical chairs. We're running around like a chicken with our head cut off.

"But Don, healthcare is up because of earnings!"

"But Don, home builders are rallying because rates dropped!"

Stop. Just stop.

When people sell - I mean when they really sell - we don't discriminate. There's no discrimination in sell side activity. In the end, you're gonna hit 'em all.

Nobody's touched Costco in months. Nobody wanted healthcare because it sucks. Suddenly they're bidding higher on a day the market's tanking?

Right now it's not indiscriminate selling. That's why this volatility is just warming up.

You gotta look at the pure tape. Holy crap, they're hitting the S&P's hard with massive volume…

That's hedging activity that screams danger.

But we're still playing musical chairs instead of seeing real panic selling.

Here's the truth: When the real selling starts, your sector stories won't matter. Your earnings narratives won't save you. Only thing that'll matter is reading the tape correctly.

See my complete market analysis - no stories, just pure tape reading.

WATCH THE VIDEO HERE

To your success,

Don Kaufman

P.S.- Today I closed out a 268% overnight winner in AAPL utilizing my flips strategy. Next week, we do it again. Click here if you’re not subscribed.