By Wednesday’s close chatter on Wall Street had everything to do with whether or not the stock market was about to slip into bear territory.
As you can see from the chart below, we’re rapidly approaching its borders.
|20% Decline Levels||from Apr. 29 highs|
And trading right now is trecherous, even for our pros.
If you’re a retail investor both Tim Seymour and Dennis Gartman suggest moving to the sidelines. “get out of the way,” says Seymour. “I can make a case for the S&P being at 1200 as well as 900 – and that’s a scary thing.”
Gartman is equally cautious. “We’re moving 40 S&P handles in a matter of minutes – that’s not a place for retail investors,” he says.
If you must trade, JJ Kinahan says trade a lot smaller. In other words, "if you typically buy 1000 shares – maybe buy 200 shares."
Karen Finerman sees the situation a little differently. She pulled the trigger and bought Disney around $30/share on Wednesday. “I make a list and when stocks I want to buy hit my price target I pull the trigger.” She feels her job is to find good companies at good prices. And on Wednesday, the sell-off presented some good prices.