DOW30 looks like a landslide, and don't be fooled by any bouncing dead cats. This is the start of the new trade war chapter, and it's just in time for a classic May sell off after one of the biggest Q1s in years. I foresee a rough and choppy Summer, and my capital is in low and mid cap utilities and REITs and some bond funds. I'm watching consumer staples, but they're going to get hit with the circumstances of international trade between the US and China, so they're going to be soft and were all red today on my watchlists. If you're going to have money in stocks, go with a similar strategy and seek out companies whose products and services meet inelastic demands that withstand downward market conditions well, and be ready to go back to cash if bonds or the safe harbor sectors look choppy enough in the coming days and weeks.
For the technicals, the price is falling below the 200 day average and will start to pull the 50 day down in a strong reversal. MACD went negative the last couple of days, and ADX at 25 and climbing with DI- soaring above that with DI+ dragging bottom below shows the downtrend solidifying. RSI is not yet oversold, but I anticipate it will drag down below that point and stay there.
For the technicals, the price is falling below the 200 day average and will start to pull the 50 day down in a strong reversal. MACD went negative the last couple of days, and ADX at 25 and climbing with DI- soaring above that with DI+ dragging bottom below shows the downtrend solidifying. RSI is not yet oversold, but I anticipate it will drag down below that point and stay there.
