Skip to contentHome page Seeking Alpha - Power to InvestorsNov 06, 2026, 10:43 AM ETState Street SPDR S&P 500 ETF Trust (SPY), DIA, QQQ, IVV, VOO, IWM, SPX, SP500, NDX, DJI, RTYVEA, VUG, VTV, DBC, IWC, VTWO2 CommentsErik Conley15.37K FollowersToday's 4% S&P 500 drop is a rare 3-sigma event, highlighting an abrupt momentum collapse since early July.Market weakness is broad-based, with cyclicals, growth, and tech hit hardest; value, staples, and homebuilders show relative resilience.Political uncertainty and fears of AI buildout slowdown are key drivers behind the sell-off, raising concerns about future equity returns.Maintaining a 10–20% cash cushion, selective hedging, and focusing on the weakest holdings are prudent strategies unless a recession emerges.primeimages/iStock via Getty ImagesAs I write this, the S&P 500 is down 4%. We haven’t had one of these “3-Sigma” events since April 2025. While I admit that it’s nearly impossible to “officially” link cause and effect for any large move in the markets, there areThis article was written byErik Conley15.37K FollowersI spent 30 years in the institutional trenches as a trader, analyst, and portfolio manager, eventually running the equity trading desk at Northern Trust in Chicago. Those decades shaped my approach: stay disciplined, trust the data, and keep emotion out of the way. Since 2009, when I began publishing my stock selections, my portfolio has delivered solid long term results—compounding in the mid teens annually through 2025. Today I manage a 15-20 stock model portfolio where I select stocks that score highly for Quality, Growth, Momentum, Value, and Risk. I use a rules-based framework that helps me build high performing portfolios. My work focuses on systematic thinking, behavioral awareness, and evidence over opinion. For my market outlook and model portfolio updates, visit zeninvestor.org. .Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, AVGO, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments(2)