August is proving volatile, but that's where the money is made. The S&P 500 predictably nose-dived after Trump's latest announcements about US/China trade dispute actions, but the action was short lived and many theorize that a future rate cut will be coming in September. The market is still showing its strength in a number of key areas, and none of my emergency stop limits for market indexes are even close to going off. Effectively, this is a short term correction to relieve price pressure to create an environment for buying and institutional accumulation.
While the previous 50 day average got broken last week, prices are rebounding off the 200 day average and breaking back above the 50 rather quickly. All trend-oriented indicators are reversing direction bullishly and most economic inidicators are still positive even if they're not growing as fast as they have been. We have not hit negative growth, and the US is frequently the bellwether for markets and a safe haven from international turmoil like the kind that is going on in Europe with Dutch banks somehow trying to make money from negative interest loans.
Be cautious when investing in volatile sectors like tech and faddish consumer goods right now, but there is a lot of money to be made for the discerning investor. I typically avoid healthcare and biotech and energy due to high volatility in reaction to news developments. Utilities and REITs are very high priced right now and aren't behaving like the typical market hedge they usually are. Always analyze companies you're considering purchasing, and most importantly, stick to your system and avoid emotional decisions in times of high market volatility.
While the previous 50 day average got broken last week, prices are rebounding off the 200 day average and breaking back above the 50 rather quickly. All trend-oriented indicators are reversing direction bullishly and most economic inidicators are still positive even if they're not growing as fast as they have been. We have not hit negative growth, and the US is frequently the bellwether for markets and a safe haven from international turmoil like the kind that is going on in Europe with Dutch banks somehow trying to make money from negative interest loans.
Be cautious when investing in volatile sectors like tech and faddish consumer goods right now, but there is a lot of money to be made for the discerning investor. I typically avoid healthcare and biotech and energy due to high volatility in reaction to news developments. Utilities and REITs are very high priced right now and aren't behaving like the typical market hedge they usually are. Always analyze companies you're considering purchasing, and most importantly, stick to your system and avoid emotional decisions in times of high market volatility.