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In the S&P 500, a Painful Day to Forget -- and a Day to Learn

"The stock market is never obvious. It is designed to fool most of the people, most of the time." -- Jesse Livermore

NEW YORK (TheStreet) -- It was a painful and weak day today for the S&P 500 (SPY) unfortunately, but that does happen.

It's no fun watching your stocks gap lower and continue to weaken.

I took losses today for sure and am now back to close to even for the year. That's fine and dandy, as it does happen that you get caught. I'll have no problem making it back, but what really bugs me is losing subscribers money. I can handle my own pain, but hearing your pain really affects me.

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I'm so sorry. But we will get today's losses and much more back. There will also be more tough days the odd time. It is just the nature of the beast that is trading.

I almost always let a half an hour of the day pass before making any moves, and I did that today. But it was a mistake. I could have limited some losses had I sold earlier.

Hindsight is always 20/20.

I'm back to all cash, except for our high-paying and well-performing dividend stocks. I'll probably be all cash for the next few days while we see if this correction will be deeper or not. I will also be looking for dip buys anytime now since those have been the way to go lately.

Buying dips and selling rips has been working, not buying breakouts and holding. It isn't always easy to buy dips, since the buys pop up in the middle of the day. But real-time members will be on it and hopefully we can claw back what we just lost in very short order.

The S&P 500 ETF is holding above $196 and the uptrend line, which is positive. Stocks are very weak, though, so chances are that the SPY ETF will break support and possibly move back to test 194.

Time will tell. But the other indices are weaker and leading, so expect a move lower for SPY.

I hope you didn't get too stung today. Enjoy your evening and Wednesday.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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