There has been a lot of talk recently about the stability of the market with the major talking points being Korea, China, Oil and terrorism. Hopefully I can help clarify how these issues impact the market.
THEY HAVE LITTLE IMPACT ON THE MARKET! There, I said it.
The big money in the market already know that every few years Korea acts up, China is still having growing pains, oil will remain low for some time and terrorism will always be around. Sure, they may move their positions around for the short-term plays and capitalize on our fears, but they aren't going to do anything rash. So back to the main question, Will the DOW stabilize or continue down?
We can speculate all we want but what we actually know is this:
-The Dow is no longer trading in its upward channel
-Major support from the weekly chart is at 15855
-We are getting ready to test this support again
-Short-term resistance is at 16888
What this all means is that the market is definitely shaken but it is still holding in there. I wouldn't jump out unless you cannot afford to lose 10% but I wouldn't jump in quite yet either. We should get a clearer picture in a week or two. Protect your portfolio if it closes the WEEK below 15855. Until that happens it is just business as usual.
Feel free to leave a comment and/or ask me any questions
THEY HAVE LITTLE IMPACT ON THE MARKET! There, I said it.
The big money in the market already know that every few years Korea acts up, China is still having growing pains, oil will remain low for some time and terrorism will always be around. Sure, they may move their positions around for the short-term plays and capitalize on our fears, but they aren't going to do anything rash. So back to the main question, Will the DOW stabilize or continue down?
We can speculate all we want but what we actually know is this:
-The Dow is no longer trading in its upward channel
-Major support from the weekly chart is at 15855
-We are getting ready to test this support again
-Short-term resistance is at 16888
What this all means is that the market is definitely shaken but it is still holding in there. I wouldn't jump out unless you cannot afford to lose 10% but I wouldn't jump in quite yet either. We should get a clearer picture in a week or two. Protect your portfolio if it closes the WEEK below 15855. Until that happens it is just business as usual.
Feel free to leave a comment and/or ask me any questions