US Equity Markets Went Down Quick Fast This Past Week, Don't Panic....Yet

in #money5 years ago

Source Image

There is no need to panic yet, because the ceiling, not the sky is falling, despite what we witnessed this week in the equity markets.

The Nasdaq Composite Index —populated by some of the most richly valued technology and internet-related stocks—put in its worst weekly decline since March 23, dropping 3.2%, while the Dow Jones Industrial Average logged its steepest two-session fall since June 19 and S&P 500index suffered its ugliest back-to-back percentage loss since May 29, according to Dow Jones Market Data.

Source

We have to put things in perspective:

1.The S&P 500 Index, the bellweather rose 7.2% during the third quarter, its biggest quarterly gain since the fourth quarter of 2013.

Source Image

2.Although showing some divergence, the DOW finally, I mean finally joined the party, making new all time highs in Sept. after lagging all the indices since Feb.

The Dow Finally Joins The Party

3.Yes, the Russell 2000 is diverging from the big caps, down 4 out 5 days to start October, dropped below it’s July lows and breached the daily demand at 1640,

but the trend is clearly still up.

With that said, lets examine the S&P 500 because I think it's the bellweather when it comes the US stock market equities and the economy in general. The S&P 500 includes 500 of the largest companies whose stocks trade on either the NYSE or NASDAQ.

NOTE:A bellwether is a security or indicator that signals the market's direction.

Price was only down 2.4% this past week.

The previous high established in January held as support this past week.

But most importantly, no daily demand zones have been broken yet.

As you can see, there is no need to panic yet because only the ceiling is falling. Could the Markets being just pulling back before resuming its upward trend?

However, what I do know is the chart on the S&P 500 suggests, if price breaks the 2nd demand zone at $2800, it will be time to re-evaluate your portfolio from continued downside risk.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

upvote banner3.gif


Published on

mentormarket.io
by rollandthomas


https://mentormarket.io/legal/termsandconditions

Sort:  

Nice post, nevertheless I am very worried about Equity markets in the short term. PMIs are weakening, Emerging markets are going down (Turkey, Argentina, Brazil and China).

Europe has a lot of political issues that will continue to come back.

I would stay away from markets right now until the Midterms at least.

Posted using Partiko iOS

Thanks @vlemon and totally agree with all the issues you reference out there, but I personally love it. I'm a position trader, but also day trade the NQ futures, so the uncertain times creates volatility which creates trading opportunities.

Markets are crazy all over the world right now @rollandthomas. I would stay away from those as of now. In the meanwhile I am thinking to invest in the crypto Futures trading using Digitex as I will be able to block more coins with less value. It's a risky business considering the state of crypto markets right now!

I hear ya @hungryhustle. I have heard of Digitex, but don't know much about them. I personally don't day trade crypto, just HODL for now.

It wouldn’t be a bad idea to take some profits after the long uptrend we have seen just in case...

It depends on the type of investor/trader one is, when the position was put on, if the position has a non-realized profit/loss, etc. most importantly what one's trading plan says to do.

Congratulations @rollandthomas! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You published a post every day of the week

Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @steemitboard:

Presentamos el Ranking de SteemitBoard
Introducing SteemitBoard Ranking

Support SteemitBoard's project! Vote for its witness and get one more award!

Coin Marketplace

STEEM 0.36
TRX 0.12
JST 0.040
BTC 70846.59
ETH 3567.69
USDT 1.00
SBD 4.79