BRIEF COMMENT ON THE BROAD STOCK MARKET (4:00 pm EST)
Today's plunge in the broad stock market was obviously triggered by yesterday's announcement (after the markets closed) by the Trump White House of 100 billion in additional tariffs on goods from China. Considering the roller coaster nature of this market right now, it's hard to tell if today's 600 point drop in the DOW is just another 'knee-jerk" reaction to the news. The DOW, S&P 500, and NASDAQ are not making new lows and are bouncing a bit at the day's close so it could very well be. If the plunge continues into next week, we will look for this new reversal period to be a low instead of a high. I still think there's a good chance for a rally to new weekly highs and a top next week that will give us another chance to sell short. We are open to both scenarios as we are now on the sidelines of the broad stock market and will trade according to the pattern that develops next week.
Today's plunge in the broad stock market was obviously triggered by yesterday's announcement (after the markets closed) by the Trump White House of 100 billion in additional tariffs on goods from China. Considering the roller coaster nature of this market right now, it's hard to tell if today's 600 point drop in the DOW is just another 'knee-jerk" reaction to the news. The DOW, S&P 500, and NASDAQ are not making new lows and are bouncing a bit at the day's close so it could very well be. If the plunge continues into next week, we will look for this new reversal period to be a low instead of a high. I still think there's a good chance for a rally to new weekly highs and a top next week that will give us another chance to sell short. We are open to both scenarios as we are now on the sidelines of the broad stock market and will trade according to the pattern that develops next week.
RSS Feed