Beware of volatility and wait for opportunities: That was the message from this morning’s pro trader.
“The economy’s doing the best we’ve seen in decades,” Fausto Pugliese of Cyber Trading University said on today’s Morning Market Briefing webinar. “There will be bargain shopping.”
He made his comments with the S&P 500 in the midst of its biggest drop since August 2015. It was only Friday that he warned customers to exit longer-term holdings because his indicators showed a lack of demand for stocks.
But Pugliese is mostly a day trader who avoids holding positions overnight. He saw the potential for sellers to drive the overall market lower in the near-term, so only experienced traders should place bets. He’s looking for support at 23,200 on the Dow Jones Industrial Average, with the next potential level around 21,000.
“It’s very healthy for the market to take a big step back,” he concluded. “Remember nothing goes up forever.”