(The new Trader Mike facebook page was already seeing some activity today. If you want to discuss the market during the day with me, this is the place to do it. 49 Fans so far, why not be the 50th?)
Yesterday I commented on the weakness of the rally off the lows and noted a possible reversal. However, I had no idea such a massive sell off was in the making. Now we are easily within reach of testing the August lows.
Navigating crashes is one of the hardest situations for any investor to be in. On my sister blog StockTradingToGo I wrote a great post recently that may be able to help shed some light on combating panic: 10 Essential Tips for Navigating a Market Crash.
It seems this market ignores Europe’s drama, then all of a sudden cares again. Today’s economic news though did not help by any means either, and many are touting the next recession is already here. If you look at the volatility and panic that has ensued the last few weeks, it stems back to overall uncertainty about the actual health of our country. Personally I would rather be told how it is than be fed sugar coated jargon but that’s just me.
Outflows from mutual funds are at highs not seen since the 2008 crash, and cash remains king. For those day trading, stay frosty out there. Catch me on the Trader Mike facebook page tomorrow, otherwise I will see you back here for more recaps next week.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | (-) Down | (-) Down | (-) Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
