Corrective action continues!
And that’s being nice. But first, for a very long time, every time markets have been hit hard, every time massive distribution showed up, every time the market looked like it was headed into a correction of magnitude….markets experienced a reversal day and then turned right back up.
We are in no way saying this will repeat. But we are saying it has been folly to get bearish after a 5-10% drop in the indices.
That all said, things simply worsened yesterday leaving the market with a bigger wound. More areas are breaking support. The one that stands out is the big financials.(XLF) This needs to be watched. Other areas that have put in topping formations are the transports, industrials, emerging markets and consumer staples.
Stay tuned!
See XLF at support and ready for small bounce then based on IV rank could be another short call spread day….like to see it back to 24.50 before hard look.
with all this govt debt, how do you think social security will be affected in the future? That is a subject all these boomers want to
address. Your thoughts?
May be you wondered how the indices have been rising so much while the economy has not done well
Let me ask you how much will it cost to buy one share from every company in the DOW, say about $2500
so if some entity buy 20 million shares of the DOW component, it will cost this entity about 50 billion. with having Account A containing 50 billion worth of shares, and account B containing another 50 billion of cash ( total 100 billions) this entity can control the market up or down as it wishes… can you guess what is this entity could be? 100 billions are not so much in today’s printing economy.