Oil prices have been dropping for over a year, and it doesn't seem to have done much for the U.S. economy. 1st qtr GDP was negative and 3rd qtr is projected to be less than 1%. When exactly is this oil price benefit supposed to kick in?
S&P has only corrected 5%. Global markets are all broken on a technical basis. I see a possible support here at 2000 for the S&P. If that doesn't hold, there's no support until 1860. I don't understand your assumption that this is just another routine two day selloff, and a reversal is imminent. In the short run, the market can go up or down for any silly reason. However, in the long run the market goes up or down based on profits, and profits are down globally.
Third qtr GDP is estimated at 0.7%, and that includes govt handouts. 1st half GDP wasn't all that great either.
You know it's possible that the market selling has just begun. People have become so conditioned to BTFD that they seem to discount the possibilty of an actual prolonged selloff. Look around. Emerging markets have been getting crushed. The Dow is at a multi-month low. Credit spreads are widening, which is normally a bad sign for stocks. U.S. GDP is barely above recession level. Somehow the S&P and Nasdaq have been immune to the selling, but that can't last forever. Bellwethers like Apple and Disney are now below their 200 dma. Netflx got hammered today. Chinese growth has slowed significantly. Europe is a mess. Puerto Rico is in default. Commodity prices are falling due to lack of demand. Overall, things don't look too good.
I think the market has reached a major inflection point. The Dow is already trading at a 6 month low. 40% of stocks are below their 200 DMA. The S&P just broke below the 200 DMA today. Fewer and fewer stocks are propping up the market. I think the market direction will be decided in the next few days, and it seems more likely to go lower than higher imho.
That's when my next limit order sell kicks in. I had sells at 70 and 80, and I will continue selling small amounts every ten points. Otherwise FB will be much too large a percentage of my portfolio.