FEAR is the driving force in today's rout......
Nasdaq is down 8.4% from High
S&P 500 is Down 7.56% from High
RSI is 34.01 & 35.26...close to Friday's low NOT lower.....
Correction is defined as Down 10% & some hedge funds MAY be shooting for that...whether they get their objective will depend on Jobs report....which I expect to be POSITIVE for the economy & markets.......consensus is Job growth of 15,000..I am expecting it to be stronger than that....
Even with better Jobs report ...Hedge Funds are quite capable of "sell the news"......BUT I do NOT believe they will do that..... as they have ENOUGH money made on the short side OR bought enough cheap shares....
SO...how do you position in this emotional market.......
BY "monitoring your OWN comfort level" this can be defined by your "time horizon" OR "exposure"......IF your time horizon is long term...then this is all NOISE.....BUT IF you are a short term trader..you must adjust to this NEW REALITY of "weak technicals"
I have adjusted by REDUCING my exposure by selling SOLF & AUY today......
My portfolio is APWR,IAG,PALM,SLW,TC,TSL......
CNBC as usual is "playing the FEAR factor to the hilt" to boost ratings....so you have to FILTER all that NOISE.....
Talking of fear factor VIX jumped by 20.74% in ONE day to close @ 26.08.....getting close to its recent high in $28 area.....could VIX be OVERBOUGHT and signalling a major turn UP in markets????
AH Asian markets are catching up to Wall Street close..they are currently Down from 1.82% to 2.83% less than S&P 500 drubbing of 3.11%......
AH Futures are all GREEN......someone knows about Jobs report????
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
No, have not heard jobs report. Unemployment is still not good. Georgia is still rising, tax receipts to government still declining. Politicians calling for taxes to make up for loss of revenue?
I had the same thoughts you did about the hedge funds.
Best Regards
Hi Standards,
Thanks for your take of Georgia situation in terms of economy & Jobs....Many states are caught off guard with US economic mess...politicians still do NOT get it.....it needs China type of FOCUS & STIMULUS to turn it around.
Saleem
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