As you all know the markets have been on a wild ride the last few weeks, including the SPDR Dow Jones Industrial Average ETF (NYSEARCAIA) . This is an ETF that represents the Dow Jones Industrial Average, which is the index the majority of people can identify with. This index has fallen roughly 10% from peak to trough and this number is what the so called "experts" define as correction territory. Finally we got the long overdue correction we have all been waiting for, this means that it's time to jump back in SPDR Dow Jones Industrial Average ETF (NYSEARCAIA) right? Well not so fast. Below I have included a chart and it shows that these markets have a long way to go and tough resistance to get through, including the daily 200ma and my up sloping trendline. So before you dive head first into these markets, look to the charts for the all clear and not only protect your money but make money in these volatile markets. Parm Mann Elite Round Table Follow me on twitter: @ParmMannTrader
The DJIA has gotten hammered lately, and I do think it's somewhat likely that the average drops a little bit lower in the coming weeks before rebounding to some degree, if at all. You're right about most people expecting a correction, and it was an inevitable development.
The markets are rebounding on Bullard's comments... MOAR QE. http://www.bloomberg.com/news/2014-10-16/bullard-says-fed-should-consider-delay-in-ending-qe.html Bullard isn't a key player tho so to rally on his say so is pretty dangerous for a retail investor. Basically its a temper tantrum from the bankers because the Fed is threatening to take their teat away. The figures Bullard quotes are a joke anyway... 6% unemployment? I don't think so... more like 26%
Yeah I totally agree...but the market is throwing the temper tantrum in hopes that Draghi will supply the sugar this time.
Spot on. Just found this issued by ECB on 15th Oct http://www.ecb.europa.eu/ecb/legal/pdf/en_ecb_2014_40_f_sign.pdf
I think there are lots of factors at work here - ebola fears, the price of oil taking a dive, earnings misses, etc. Very few individuals have the power to move markets with their words, and such moves tend to be mild and short-lived when triggered by the words of just about anyone other than the head of the Fed.
I'm currently of the mindset that because their is a major stock market crash every 8 years, I believe that around 2016 we'll have a major crash. I think the current sell off will continue some and then 2015 will rally some after the sell off, probably even setting new highs before a second and much more major sell off.
TO my eye, there really is no way of knowing presently whether the market will continue its winning ways of the past few years or have a rebound only to continue selling off. We all know that no asset class, equities included, can go up forever, and bear markets occur approximately every 6-8 years. SO, we are in the timing band for a bear market in equities to begin. Of course, this market has had the backing of the Federal Reserve growing asset sheet, hedge funds pumping money on the back of the Fed, and our own U.S. Government all benefiting from a rising equity market. So, will they continue to infuse enough capital to support rising equity prices? Perhaps for a while longer, but one of these days, and the time is growing nearer, the efforts of the fed, and the wishes of the U.S. government won't be enough to stave off a flight to save profits, and get out of an overvalued market. At that point, there will be a major unwinding to complete that will likely shift the pendulum toward a substantial correction that last more than a couple weeks. Anyway, trying to predict the future is a very difficult undertaking. It's best to observe the current, and wait for low risk setups on which to place bets. My money will be put to work again once I see how the market responds to it's next rally.
There certainly are a lot of factors, starting from ebola fears and the price of oil taking a dive to earnings misses and others. There are very few people who has a power to move markets with only their words and even fewer have to power to move it with their money and actions.
This correction is long overdue. The market has really been overperforming the economy as a whole by a long shot. The economy has been growing at a slow pace while the market has shot up over the past six years. I think long term, it's still on a positive trajectory, but would expect the market to dip down a bit more before the next uptick. There is a lot of instability in the world and in the economy in general here recently, and the market is reflecting that.
