The markets are displaying weakness which usually kicks in during the month of February
but came early this year. We started to see declines from early January but for now,
the overall market remains bullish.
The Nasdaq and the Dow Jones broke and closed below the daily 200 simple moving
average on January 20th. The S&P lagged behind and closed below the daily 200 simple
moving average on January 21st. With all three US indices now below this indicator,
we need to keep a close eye on the markets.
The ideal scenario is for a quick reversal back above the 200 simple moving average
and a continuation of the bull trend.
If we see further moves to the downside, all is not lost as we may be offered shorting
opportunities in weak stocks, but we need to be patient before jumping into any
positions for now.
This week will be crucial in determining our next move so keep on the lookout for
updates on the market.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
but came early this year. We started to see declines from early January but for now,
the overall market remains bullish.
The Nasdaq and the Dow Jones broke and closed below the daily 200 simple moving
average on January 20th. The S&P lagged behind and closed below the daily 200 simple
moving average on January 21st. With all three US indices now below this indicator,
we need to keep a close eye on the markets.
The ideal scenario is for a quick reversal back above the 200 simple moving average
and a continuation of the bull trend.
If we see further moves to the downside, all is not lost as we may be offered shorting
opportunities in weak stocks, but we need to be patient before jumping into any
positions for now.
This week will be crucial in determining our next move so keep on the lookout for
updates on the market.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
