The breakout into new high ground on the Nasdaq was clearly a fake out or a Bull Trap. I know many traders that bought into this and spoke about a Super Bull Cycle. Maybe they will be right. However, my game plan is defense. With China down 8% in one day, volatility like that can chew up a portfolio rather quickly.

On our US Markets…major supports are close to being violated. Trend lines from 2009 and key moving averages. The SPX closed just above it's 200dma while the COMPQ broke below it's 50dma. The market is looking inherently weak. Bull markets do not last forever. Just the hope of non experienced investors. They hope the prices they paid for stocks will come back….

I would not suggest trying to go short the market as there have been many rebounds when it looked like things would really get going on the downside. The sidelines are fine for me right now.

I hope you have a trading plan to stay out of BIG trouble…