If we could understand and ACCEPT that the market moves in a wave formation instead of a linear move, then we would understand why the market is heading south now.
With barely a week to go before the Nov 3 election and still no confirmation of the stimulus package, the stock market is sending a state of panic attacks to the traders and investors.
If you are a long term investor, then you should be happy as the price correction means buying at a lower price. If you are a short term trader, then now is a good shorting opportunity.
If there is no firm answers on who is winning the election on Nov 3, then the market is going to react badly as it hates uncertainty. Thus, from now until the news is out, I expect the market to be having some correction.
Comparing the SPX500 with the VIX indicator, it provides a clearer answer to the direction ahead. VIX has broken out of the resistance and is likely to move towards 37-38 dollars which implies the downfall of SPX500.
Those who are holding on to a large portfolio of stocks, commodities, ETFs, etc may want to take some profits or trim your position going forward or learn to hedge your position by shorting or buying VIX.
Hang on there, stormy weather ahead !
With barely a week to go before the Nov 3 election and still no confirmation of the stimulus package, the stock market is sending a state of panic attacks to the traders and investors.
If you are a long term investor, then you should be happy as the price correction means buying at a lower price. If you are a short term trader, then now is a good shorting opportunity.
If there is no firm answers on who is winning the election on Nov 3, then the market is going to react badly as it hates uncertainty. Thus, from now until the news is out, I expect the market to be having some correction.
Comparing the SPX500 with the VIX indicator, it provides a clearer answer to the direction ahead. VIX has broken out of the resistance and is likely to move towards 37-38 dollars which implies the downfall of SPX500.
Those who are holding on to a large portfolio of stocks, commodities, ETFs, etc may want to take some profits or trim your position going forward or learn to hedge your position by shorting or buying VIX.
Hang on there, stormy weather ahead !
Comment:
wow, 900 points down for DOW and 120 points down for SPX500........this volatility may be too much for some of us to take. suggest take a break and stay at sideway if you cannot stomach this risk
Comment:
we are at a crucial stage as next Tuesday will determine the election results. We can see some support currently at 3218 level as the VIX also displays some buying weakness as well.
Let's see tomorrow how it fare first.
Let's see tomorrow how it fare first.