The combination of a death cross, increased volatility/vix, and market break down patterns suggest lower prices are to come in 2019.
It seems that even with all these years of trading and analysis, the markets never fail to surprise me. And as always, i will take a step back with every volatility punch to recollect my thoughts and deploy greater risk management. I believe that in time this is something one can improve on through consistent practice and dedication.
Anyways, moving on...Since the trading environment has changed significantly (second major volatility event for the year), i feel that the best approach moving into the new trading year would be a more defensive and active strategy. Meaning picking stocks that are robust in terms of technicals and funamentals. Current stocks i'm eyeing heavily right now are goldminers since i have a strong investment thesis for gold. More on that later...
Taking a look from a global-macro perspective i can see that this volatility event is not just the USA, but also going on around the world (Europe, Japan, and Emerging Markets). The increased uncertainty, if it were to continue, could potentially lead to stock market declines of greater than 20% in my opinion.
We are currently at -13% for $SPY and already at -20% for $IWM and things are still looking pretty bad.
It seems that even with all these years of trading and analysis, the markets never fail to surprise me. And as always, i will take a step back with every volatility punch to recollect my thoughts and deploy greater risk management. I believe that in time this is something one can improve on through consistent practice and dedication.
Anyways, moving on...Since the trading environment has changed significantly (second major volatility event for the year), i feel that the best approach moving into the new trading year would be a more defensive and active strategy. Meaning picking stocks that are robust in terms of technicals and funamentals. Current stocks i'm eyeing heavily right now are goldminers since i have a strong investment thesis for gold. More on that later...
Taking a look from a global-macro perspective i can see that this volatility event is not just the USA, but also going on around the world (Europe, Japan, and Emerging Markets). The increased uncertainty, if it were to continue, could potentially lead to stock market declines of greater than 20% in my opinion.
We are currently at -13% for $SPY and already at -20% for $IWM and things are still looking pretty bad.