As someone asked earlier, what would I think if not knowing the news but just knowing the charts? I'd be bearish. Long term correction bearish. The failure to break to new highs would really have me worried. Strictly chart wise speaking here.
I would not be buying just yet, but this market is not down and out for the count. The UK has 2yrs to get this all lined up, that is almost an eternity in stock market years. The immediate risk is margin calls for big hedge funds IMO, we have yet to see that happen.
DBA has been trading up since the open. Kinda contrary to SPX movement. Thinking of adding to my two commodities positions which are not down too much <5% each after two days. I just don't see some of the commodities going lower. It's food. It's in demand. Always.
Some of you are nice people. I was chatting with one writers doing an internship, he was looking to get some opinions from average investors about what they were doing in the market. I said we are going all in on UVXY!
I agree with you. But your analysis takes in other factors outside of charting. I was asked if I ignore those other factors and just focus on the chart. Which I never do when it comes to the broad market. I do it with individual stocks though, just look at charts, because there is just too much I'd have to study on am individual stock to get the low down.
Seems like people are putting money into utilities and REIT, they have done well during the selloff, you have to wonder how those stocks would do when the market begins to bounce
Defensive sectors are going to be giving up gains when this market bounces, and more so if this market goes on to make new highs. Utilities and telecoms are all at the upper range, if you owned them going into this mess, you were obviously well diversified and prepared for market turmoil. If you are thinking about getting into these sectors this week, I cant help but feel you are chasing high prices here.
This market isn't going to new highs any time soon...at least without the Fed getting involved with a big move. I'm sure they are having some long meetings this week - I doubt they will remain silent through this week.
Im not sure they will do anything, or if they can do anything. They can say they will hold off on rate hikes maybe, but what more?
