The market is experiencing some real selling for the first time in a very long time. This isn't a particularly unusual bout of profit-taking but it has been so long since we have seen "normal" selling it feels much worse than it really is.
The big shift this morning was that the dip buyers were thrashed and instead of a quick recovery, the indices have taken out the early lows and we are seeing a lower low. That has been very rare to see. As I've written often, the bears have been terrible at generating downside momentum but they finally have a little bit going today.
At this point I believe this is still very healthy corrective action that is long overdue. We have to shake up market players a bit and reduce the high level of complacency that has been building. Perhaps this is the start of a topping process but I'm not yet convinced that we have seen the highs.
I'm looking for some new buys into this weakness but am not moving too quickly so far. My Stock of the Week, Iovance Biotherapeutics (IOVA) is acting like a champ and Immersion Corp. (IMMR) , which I discussed yesterday, is up nicely as well.
I want to buy some dips but am doing so incrementally. I stuck a toe in Lam Research (LRCX) and am eyeing other names such as Remark Holdings (MARK) , Cheetah Mobile (CMCM) and some biotechnology names but haven't made any significant additions so far.
This action is painful if you have long positions but it is badly needed and the market will be better for it. Manage those positions and try to keep losses contained.
