{"id":312958,"date":"2021-07-31T16:02:00","date_gmt":"2021-07-31T13:02:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/michael-sinceres-long-term-trader-heres-your-to-do-list-before-the-stock-markets-next-dive\/"},"modified":"2021-07-31T16:02:00","modified_gmt":"2021-07-31T13:02:00","slug":"michael-sinceres-long-term-trader-heres-your-to-do-list-before-the-stock-markets-next-dive","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/michael-sinceres-long-term-trader-heres-your-to-do-list-before-the-stock-markets-next-dive\/","title":{"rendered":"#Michael Sincere&#039;s Long-Term Trader: Here\u2019s your to-do list before the stock market\u2019s next dive"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a406334af49f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a406334af49f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/michael-sinceres-long-term-trader-heres-your-to-do-list-before-the-stock-markets-next-dive\/#The_clock_is_ticking_for_US_stocks\" >The clock is ticking for U.S. stocks<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/michael-sinceres-long-term-trader-heres-your-to-do-list-before-the-stock-markets-next-dive\/#Michael_Sincere\" >Michael Sincere<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Michael Sincere&#039;s Long-Term Trader: Here\u2019s your to-do list before the stock market\u2019s next dive<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_clock_is_ticking_for_US_stocks\"><\/span>\n  The clock is ticking for U.S. stocks<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000350646\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000350646\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       After hibernating for months, the stock-market bears came out of their caves on July 19. That day, the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.42%<\/bg-quote><br \/>\n       tumbled 725 points or 2.1%. The bears hit a home run \u2014 at least for a day.\u00a0\u00a0<\/p>\n<p> As usual, everyone wanted to know why the market fell, and the analysts had prepared answers, from COVID-19\u2019s Delta variant to the Consumer Price Index to overbought technical indicators.  <\/p>\n<div class=\"paywall\">\n       The truth is that nobody knows. People have multiple reasons for selling, so it\u2019s ridiculous to blame one event. That said, a big contributor to the decline was automatic, computer-generated selling. Once large market participants, especially algos, started selling, there was a mad rush out of the door. No one wanted to be the last one out, so retail traders and institutions sold in a panic, which got more intense as the day went on.\u00a0 <\/p>\n<p>Technical indicators contributed as well:  The weekly relative strength indicator (RSI) has been remarkably accurate in warning of a market reversal. Once RSI goes over 70 and stays there, buyers beware.\u00a0 After the July 26 market close, the RSI of the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.54%<\/bg-quote><br \/>\n       stood at 71.36 on the weekly chart \u2014 an extremely overbought reading. Does this mean that the index is going to plunge tomorrow? No one knows. But RSI is giving a clue that the U.S. market is in the danger zone.<\/p>\n<p><strong>The bad <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> bears can\u2019t catch a break<\/strong><\/p>\n<p>Before the bears could say, \u201cI told you so,\u201d the next day, July 20, the 700-plus point Dow selloff was erased by a 550-point Dow rally. The bulls forgot about the selloff and returned to celebrating, and gulping glass after glass of their favorite drink, \u201cbull-ade.\u201d Once again, the storm passed, but this time a little fear creeped into the bulls\u2019 psyche. Before, the only fear was the fear of missing out on the next rally. Now, many investors realize the market can actually go down.<\/p>\n<p><strong>What to do now<\/strong><\/p>\n<p>The next time the market plunges and you\u2019re experiencing a variety of emotions, the following guide might help:<\/p>\n<p><strong>1. If you\u2019re panicked<\/strong>: Don\u2019t do something; sit there. Do not buy, do not sell, just sit tight. In fact, turn off the computer or other devices. Don\u2019t fret over how much paper money you lost that day. Exercise, walk, run, swim, ride a bike. Your goal is to reduce emotions so you can get a good night\u2019s sleep. When the market stabilizes, reevaluate what you own. Do not make any big financial decisions on days like this.\u00a0<\/p>\n<p><strong>2. If you\u2019re afraid<\/strong>: Take it easy. The selloff will end eventually. There is no reason to panic. Again, reevaluate what you own when the market comes to its senses. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>3. If you\u2019re unaffected:<\/strong> Still, check your portfolio to make sure you are properly diversified. While it\u2019s find to not care if the market falls, be sure you are hedged for a worst-case scenario. One day there will be a bear market that will last months or years. Be prepared.\u00a0<\/p>\n<p><strong>What specific actions should you take?\u00a0<\/strong><\/p>\n<p>Now that you\u2019ve taken care of your emotional health, there are other financial decisions you can make. Let\u2019s take a look at some strategies and tactics that may help: \u00a0<\/p>\n<ol class=\"articleList\">\n<li>\n      Sell if the stocks or indexes you own fall below their 200-day moving averages. Note: The major indexes such as the Standard &amp; Poor\u2019s 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.54%<\/bg-quote><br \/>\n       have not fallen below (and stayed below) their 200-day averages for a decade. When they do eventually, that is a clear sell signal.\u00a0<\/p>\n<\/li>\n<\/ol>\n<ol class=\"articleList\">\n<li>\n      Create a long-term investment plan and follow it no matter what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens in the short term.\u00a0<\/p>\n<\/li>\n<\/ol>\n<ol class=\"articleList\">\n<li>\n      Dollar-cost average into index funds.\u00a0<\/p>\n<\/li>\n<\/ol>\n<ol class=\"articleList\">\n<li>\n      Diversify. This is the key to success in the stock market and in life. If you own only stocks, consider bonds, but talk to a financial professional (not your neighbor) before taking this step.\u00a0<\/p>\n<\/li>\n<\/ol>\n<ol class=\"articleList\">\n<li>\n      Buy the big dips. This strategy still works. If you had bought the dip on July 19, you would have cleaned up on July 20. One day this strategy won\u2019t work, but that day hasn\u2019t come yet.\u00a0<\/p>\n<\/li>\n<\/ol>\n<ol class=\"articleList\">\n<li>\n      Sell covered-call options. This is still an excellent way to generate extra income. This strategy is also ideal for disposing of unwanted stocks, and getting paid for it.\u00a0\u00a0<\/p>\n<\/li>\n<\/ol>\n<p><strong>Plan for the next correction or bear market<\/strong><\/p>\n<p>After a 13-year bull market, the clock is ticking for U.S. stocks. While the bulls scored another victory this time, one day the market won\u2019t reverse direction and will begin a steep correction, or worse yet, a bear market. That\u2019s when you will be glad that you have a plan and an investment script to follow on the worst days.\u00a0<\/p>\n<p>Know what you own, sell to the \u201csleep-well\u201d point and diversify into a variety of financial products including cash and bonds. This way, when the market plunges again, you won\u2019t make knee-jerk emotional decisions or suffer an anxiety attack.\u00a0<\/p>\n<p><em>Michael Sincere\u00a0(michaelsincere.com) is the author of \u201cUnderstanding Options,\u201d \u201cUnderstanding Stocks,\u201d and \u201cMake Money Trading Options,\u201d which introduces simple options strategies to beginners.\u00a0<\/em><\/p>\n<p><strong>More:<\/strong> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/Don%E2%80%99t%20be%20a%20sitting%20duck%20when%20this%20stock%20market%20rally%20fades%20%E2%80%94%20here%E2%80%99s%20what%20to%20do%20now\" class=\"icon none\">Don\u2019t be a sitting duck when this stock market rally fades \u2014 here\u2019s what to do now<\/a><\/p>\n<p><strong>Plus: <\/strong>This could be the peak of the tech-stock boom \u2014 Here\u2019s what to watch out for<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Michael Sincere\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/michael-sincere\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:msincere@gmail.com\",\"text\":\"msincere@gmail.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Michael_Sincere\"><\/span>Michael Sincere<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<div class=\"mw-author-contributor\">MarketWatch Contributor Network<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7559-B62842A2D1F2%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Michael Sincere&#039;s Long-Term Trader: Here\u2019s your to-do list before the stock market\u2019s next dive&#8221; The clock is ticking for U.S. stocks After hibernating for months, the stock-market bears came out of their caves on July 19. That day, the Dow Jones Industrial Average DJIA, -0.42% tumbled 725 points or 2.1%. The bears hit a home&#8230;<\/p>\n","protected":false},"author":1,"featured_media":312959,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-312958","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/312958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=312958"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/312958\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/312959"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=312958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=312958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=312958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}