It may sound funny coming from me. But you cannot buried your face in the sand and just scream “overarching trend in my favor!” without it eventually coming back to burn you badly.
True, the “meat” of the trend is relatively calm to ride. But we had been looking at the longer-term timeframes for perspective on the likes of the utilities and REITs, in my video market recap which I do Monday-Thursday.
Even in an uptrend, especially when it becomes abnormally stretched, you can see the rubber band snapping back violently the other way, complete with extraordinarily heavy selling volume.
The utilities and REITs are now below their respective lower Bollinger Bands, which means stabilization is likely into the end of the week. However, damage has indeed been done here. And turning to other areas of the market, such as the IBB XLP XLY ETF’s, the long-term stretched conditions should at least make you consider that they can snap back too.
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