Markets has been trashed on many disappointments.......
Fed did not come through with a clear cut interest rate policy.....two disagreed even on modest .25% rate cut....
China USA trade war is accelerating into ridiculous level, now its Chinese turn to turn the heat on USA with new tariffs.....
Imported goods will cause inflation in US to go beyond Fed's comfort level.....thus interest rate picture will be further messed up.
USA may start another trade war with EU.....BMW is in direct sight of next tweet.....
All of the above is not what US stock market normally lives with, market hates uncertainty and these issues are going in overdrive on non resolution mode.....
SO....US Indices promptly went from a new all time high to below 50 DMA in 8 trading session....fastest descent I have observed from strong technicals to total breakdown.....
SO....we are the mercy of next tweet on a daily basis and it may not get better in near term.....to many battles being waged with tweets as a weapon and strategy......
BUT markets do stage an oversold bounce....where we are sitting right now.....
We may do series of RETEST of lows and hopefully we may be successful right here....
Many many stocks are performing well which is quite admirable in current environment...who could have guessed that TWTR will make a new high in this environment when FB is struggling with 50 DMA.....
GOOG CMG MTCH and LRCX are other all star stocks......
VIX has given clear signal about a direction change in process by turning back from 20 area to close @ 17.61 on a negative Friday TAPE.
SO...hopefully we have the right stocks in our portfolio going forward, it is not the same market which we have seen......
FB had good earnings report and was promptly send south since...
AAPL had great earnings, it has given back all its gains....
Try to do strategic trades as many good results are being ignored.....
Good luck with your own analysis and your comfort level with tweets and its after effects.
BLOG does NOT give buy or sell.
Saleem
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