The problem with days like this are that we don't know what the US will do on Monday night - we have that unfortunate lag - that can also work in our favour if the US finishes on a high for the week....
What I expect is that a drop like this will cause a degree of fear selling-and that will be compounded on Monday with a lack of demand -just that combination can push some stock prices down pretty quickly.
I suspect that no one will buy anything until Tuesday at least- things that are trading on blue sky are usually the hardest hit - the speck stocks from what I have seen usually get a bit of a route-- in these situations- things can bounce if the US stops wobbling - usually though they do not recover back to where they were- sort of stops momentum dead in it's tracks.
Protecting what you have is always a good idea- instead of wishing you sold - Earlier in the year just before the sell in May period- the markets suddenly lost momentum and volume /liquidity - before a lot realized what was going on, there were quite big losses across a lot of stocks - it took about 6 months for things to get back to normal, since then we have enjoyed an unusually good run in the last six months.
Perhaps that is also a sign that there has been some exiting positions going on - the many volume events that have gone on can have the reason of timely well disguised exits- that is one of my theories.
You need to realise that these runs don't last forever and can stop suddenly - at least we have had some signals-
A few of us mentioned that we were holding mostly cash-
Alternatively it can just be a few days of volatility and bounce - it is not possible to know what will happen exactly -
Profits will be taken by many on the stocks that have risen - so just assume things might get squeezed back down to all their support levels-
Only my opinion and experience of previous drops -
