The US stock market has seen heavy selling volume during the first week of September 2021. This is due to a combination of post-earnings season profit-taking, unfavorable economic indicators coming out of the US and China, rise in Covid-19 cases in developed countries, and more. As advised by Mark Minervini on his Twitter post (shown above), it is currently safer to take profits if you have any, and lighten or close your positions if you recently got into a trade. If you’re not doing any short selling it is best to have capital on the sidelines while you wait for the selling and downward trend to fade away.
What is the gameplan after this market correction is over?
If you’re doing mid to long-term trades, the first thing to look for are trades among megacap stocks that have strong financials and/or ETFs like S&P 500 (SPY), QQQ, or Nasdaq (NDAQ). Growth stocks such as Apple (AAPL), NVidia (NVDA), Shopify (SHOP), and more, tends to go on a bull rally whenever the overall market is recovering. I’ll post an update when there are signs that the selling has slowed down and the market in general are recovering. Until then, remember to take profits and protect your capital during a market correction.