Warning Sign!--8/9/2017

I wrote about this very same concept on 10/6/2014.  The concept is this:

The media today is touting a "sell off" in the markets over the US/North Korea verbal jabs.  However, the Dow is, currently, down 81.93 points and the S&P 500 is down 4.14 points.  That is 0.37% and 0.15%, respectively.  

That is NOT a sell off!!!

The issue with this is when the media touts a very small draw down as a sell off and the market participants begin to buy into that fact, then when a real sell off (of 10%+) happens panic begins to set in.

Could this happen?  Of course, anything is possible.

But I just want to keep everyone updated on this phenomena.  With volalitity being at record lows, small pullbacks might cause some uneasiness.  But, remember, 3 to 5% sell offs are common place in normal functioning markets.  And 0.37% pullbacks are, literally, nothing!!

Keep your wits about you.  Don't buy into the media's over-sensationalizing everything.  The North Korea situation could impact the markets, but it hasn't yet.  Be ready, but don't panic.