Editors Note:

The A/D line was 7:1 in favor of decliners on volume of 10 billion shares. This was a major market event BUT there was still no fundamental reason. Markets take profits. It is a fact of life and we have to deal with the unexpected events. The carnage today was dramatic.

The top eight stocks in the list are typically the defensive stocks that are in favor when the market melts down. McDonalds was positive earlier in the day but was eventually dragged lower with the rest.

The market caught fire when the Russell crashed below the long-term support of the 200-day average at the open. The index could now be targeting 1,500 and that would be a major drag on the rest of the market. I warned that the Russell was the sentiment indicator for fund managers and apparently, they have turned bearish.

I am recommending we buy the opening dip because the likelihood of a repeat decline is very rare. Q3 earnings are just ahead and after today there are plenty of bargains.

I have written multiple times about second half lows being made in the first two weeks of October. However, October normally posts a gain for the month. I did not really expect the 2H lows to occur this year after a relatively tame Aug/Sep and strong fundamentals but the market has decided to follow the prior trend.


New positions are only added on Wednesday and Saturday except in special circumstances.


No New Bullish Plays


No New Bearish Plays