The market was hoping to hear something positive over the weekend on trade, maybe a phone call between the two leaders.  There was nothing.  Then, this morning the stakes were ratcheted higher with China hiking tariffs on $60 billion variety of products from 5 to 25%.

Tech is being hit the hardest, along with Communication Services, which includes lots of momentum names many consider to be Technology.  There are other pressures to some of these names, including Apple (AAPL) losing in the Supreme Court, and India joining the EU in reviewing potential Google (GOOG/GOOGL) anti-trust issues.

I know these big hits to the market are very unnerving, but I have always welcomed them after learning from my first one on Black Monday in 1987.  They take the market to levels they are destined to reach but only quicker.

In many ways, today’s action is more price discovery than panic.  Of course, profit-taking coupled with defensive moves is causing the most damage.  I’m getting lots of calls and emails about buying this dip.  This is what you need to know.

• There are a lot of stocks on our potential buy list. 
• Not all dips are created equally or have the same drivers. 

Because of the nature of this pullback, China Trade War, we must make adjustments and add in other factors.

We have a long list of potential buys we’re refining each day.  While we aim to buy low, we aren’t trying to pick the exact bottom per se.  I’m excited about the valuations being created.  Meanwhile, the more the market builds in new tariffs as a longer-term reality, the bigger the bounce will be once there is resolution.