The jobs report temporarily sent the indices roaring, but under the hood the market lacked breadth. Today we gave back -1.5%. The dogma of BTFD appears as solid as ever. There are two timely questions:
1. Is there enough passively allocated money coming into the market to overwhelm sellers making this another “normal” pullback (4-5%)?
2. How does the market trade in the days after it sells off more than -1.5% in a single session? Put another way, what strategy gives you the best odds of not getting run over while you BTFD?