August 15, 2019 7:48am
It’s been a volatile week for stock investors
But, I see the sector’s oversold being recognized; yesterday with 33 of my “covered” 45 being down and Monday and Friday closing negative …
I’d be dipping my “toe” in these markets; even if I lose money, in a week I’ll be rewarded
Stay cautious but, think boldly, yesterday’s market impacts Thursday’s session; If you were a subscriber … you would understand why!
If you think you understand these markets, review your “positions” and think again and then again. There is a “heck” of a lot of disruption; liquidity remains a cause for concern!
Dow futures are DOWN -0.11% (-46 points), S&P futures are DOWN -0.16% ( -5 points) and NASDAQ futures are also DOWN -0.50% (-37 points) – the “numbers will continue to “fluctuate” before the open!
The stock futures sell-off continues after China vowed to take steps to counter U.S. tariffs;
European stocks traded lower amid a volatile session following a global sell-off as bond markets stoked fears of an impending recession with the pan-European Stoxx 600 was down -0.7% by mid-morning;
Asia Pacific shares were mixed as the main yield curve in U.S. Treasury’s inverted, triggering fears over the state of the U.S. economy.
Futures are looking grim and down after China vowed to take steps to counter U.S. tariffs, rattling global equity markets and sending Dow futures lower.
That follows the Dow’s worst day of the year on Wednesday amid a recession signal from the bond market. The stock market took a huge hit in the previous session with the Dow plunging 800 points in its fourth-largest point drop ever to a two-month low. The Dow’s 3% drop was the worst this year. The S&P 500 also fell nearly 3% <CNBC>.
The S&P 500 fell 1.2% on Monday, followed by a 1.5% rebound in the next session, and then came Wednesday’s brutal sell-off of 2.9%. This kind of consecutive whiplash — down 1%, up 1% and down 2% — is relatively rare, occurring only 19 times the last 30 years.
I won’t even begin to describe the NASDAQ; it rubs alongside of the other indexes.
From Wednesday’s evening post, “another session of swimming with sharks. Investors are getting spooked as there were no “stay out of the market’s water” signs. Pre-open indication: many (sector equities) will remain stuck in the mud of under-appreciated.”
• The NASDAQ was down -242.42 or -3.02% to 7,773.94;
• The IBB closed down -2.23% while the XBI closed down -2.82%;
• The close was negative with an A/D Line of 9/33 and 1 flat and 2 acquired;
• The range of the 9 upside was +0.06% (BOLD) to +23.79% (SLDB +$1.23) while the 33 downside ranged from -0.10% (ONCE) to -7.57% (CLLS);
• 3 out of the 9 upside had higher than the 3 month average volume;
• 9 out of the 33 downside had higher than the 3 month average volume;
August has 4 POSITIVE and 6 NEGATIVE closes, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
*** I’m staying in my cocoon and let the markets ride out the “storm”; yet, just might dip my “toe” into some sector equities ***
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.