James "Rev Shark" DePorre, a Real Money contributor, is the author of Invest Like a Shark: How a Deaf Guy With No Job and Limited Capital Made a Fortune Investing in the Stock Market. He operates sharkinvesting.com, an interactive online community that serves and educates active investors.
The ISM disappointment appears to be digested fairly well right now but keep an eye on the intraday lows.
Thinking of the market as going through a rolling correction with various sectors experiencing bear markets at different times gives the action a different character than if you think of it as a single entity.
If you've been paying attention to the underlying action in the market lately, this drop in the indexes should not come as a major surprise.
I am inclined to focus more on counter-trend bounces in weak markets.
Indices are seeing the most severe downside momentum since early August.
The action under the surface in individual stocks has been covered up by the indices, which have held up; not anymore.
For weeks individual stocks have been struggling, while the indexes held up relatively well, but that changed Tuesday.
The big problem for the bulls Tuesday is that there isn't any tweet on China trade to bail them out.
When I find charts and stocks I want to buy I will be more bullish but there is no choice but to wait.
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