The Alternative Investor
  • Home
  • TRADING BLOG
  • Current Positions
  • Alternative Investor Strategy
  • ETFs
  • About Alternative Investor
  • Contact

Trading Blog      Thursday (late night),  February 6, 2020

2/6/2020

 
IMPORTANT BROAD STOCK MARKET UPDATE (11:00 pm EST)

News of China cutting tariffs on $75 billion of U.S. goods (the first phase of the new trade deal - in spite of the ongoing corona virus crisis) is buoying stock markets today. The DOW and S&P 500 edged slightly higher today with the DOW finally clearing it's all-time high of 29,373 from Jan.17 (by only 6 points). This negates our bearish divergence signal FOR THIS WEEK; however, we are still in our reversal zone (Feb. 4 - 13), so if we get another bearish reversal signal next week (one or two but not all three market indices - DOW, S&P 500, NASDAQ - making new highs, then we could get a top and reversal then (it is very late in this cycle and a final top is due now).


We closed above 29,373 in the DOW today so our stop loss was broken and many traders may have covered their short NASDAQ (or other broad stock market) position as I suggested in yesterday's blog. Those traders should remain on the sidelines for now. I held my short NASDAQ position into the closing bell hoping it would turn down sharply near the end of the day, but it did not. It also didn't rally much and did not get above yesterday's high. While this is a good sign that the rally is getting ready to roll over, we can't rule out more rallying tomorrow or even early next week. I would suggest that anyone like me still holding their short position in the broad stock market place a reasonable stop loss on their position now (for tomorrow's open) to prevent excessive loss should the market surge up early tomorrow.
If the stop loss holds and the DOW closes back below 29,000, we will hold our short position into next week. If the stop loss holds and the DOW looks like it will close above 29,000 we will probably cover (unload) our short position manuall
y.
If this is all very confusing just follow the blog tomorrow for any trade alerts
.

Wall Street's optimism this week fueled by President Trump's acquittal and China lifting its tariffs may soon be tempered by more worries over the corona virus. The epidemic appears to be getting worse, and this could easily frighten equity markets into a correction soon.



​


Comments are closed.

    RSS Feed

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012

The Alternative Investor takes no advertising or incentives from any company, institution or investment that is discussed on the website.  Any trading and investing information presented is based on Alternative Investor's independent and unbiased research and analysis of current financial markets.

                                                                                                                                                            LEGAL and DISCLAIMER

All statements and trading/investment information on this website represent solely the personal opinion of The Alternative Investor based on information available at the time of writing and are intended for educational purposes only and are not a recommendation to buy or sell securities, commodities or currencies.  The Alternative Investor is not a licensed broker or financial advisor.  The Alternative Investor presents the trading and investing information on this site in good faith based on his own research into current financial markets but cannot and does not guarantee profit and does not guarantee against any financial losses that result from using this information.  All users of this website and the information presented within it assume full responsibility for their own personal trading/investing decisions and any losses that may result from them.

Trading and investing in any financial market may involve serious risk of loss.  For this reason all traders and investors should never place more money than they can afford to lose in any individual market.  The Alternative Investor monitors several markets and encourages a balanced distribution of funds among them (and others).  The Alternative Investor recommends consulting with a professional financial advisor before making any transactions with financial ramifications.  All trading, investing and financial transactions should always be made in accordance with the appropriate laws and legal regulations in your area of jurisdiction.

The Alternative Investor is an independent researcher and analyst and receives no compensation of any kind from any individuals, groups, companies or institutions discussed on this website.