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Sunday, 7 February 2016

why did the stock market drop today



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why did the stock market drop today ?

why did the stock market drop today
why did the stock market drop today

so, why did the stock market drop today ? Infact, why is the stock market doing horrible the last few weeks. Since the beginning of 2016 the stock market is dropping like a rock, and it has lots of investors nervous out there. 

Friday's jobs report had the whole market skidding down. It was a horrible day as analysts say they would not be surprised to see stocks take aim at January's lows in the week ahead as investors await two days of testimony from Fed Chair Janet Yellen. If that happens, more investors will be losing some of their hard earned money.

The two days of testimony of Yellen on the economy before congressional committees Wednesday and Thursday is the highlight of what promises to be another volatile week in markets. It set to make market turn on a dime and the volatility at records heights. One catalyst that has been temporarily removed is China, where markets are closed while Lunar New Year begins, so little data is expected.

Yellen will be giving her speech at the end of the this week, but the markets have also priced out the possibility of a rate hike for this year, that is because the weakening economy and faltering financial conditions could give way to a recession. Its probably a little to early to go preaching in a the streets about a recession, but the weekly chart below of the S&P is a little depressing. It could basically mean more lows are on the cards!!!. Look at the chart of the S&P, the last few weeks looks nothing more than a BEARISH FLAG set up on the daily chart. Right now we busted down from the flag pattern itself.


why did the stock market drop today
why did the stock market drop today


Also in the week ahead. The JOLTs report on job openings and turnover Tuesday will be important, after the January employment report showed a big decline in hiring — just 151,000 payrolls — but a surprise pickup in wages and a decline in unemployment to 4.9 percent, due to more workers finding jobs.

The jobs report last friday could convince investors that this soft patch could turn into a bigger slowdown or recession. There is also retail sales data on Friday, a key read on the consumer. So we will have to wait and see, but so far we do not feel the selling on the market has stopped.

"There's a lot of pressure on the Fed chair. It's definitely a tricky situation for the Fed. The economy doesn't look too bad but it certainly has weakened. They finally got liftoff, and now the market is clamoring for at least a reversal — to stay on hold, if not some outright action," said Gina Martin Adams, Wells Fargo Securities institutional equities strategist.


Stocks sold off violently Friday, and the S&P 500 was off 3.1 percent for the week to 1,880, after three weeks of gains. LinkedIn's earnings disappointment sent its shares down 43 percent, and momentum names followed. Facebook was down nearly 6 percent Friday, and the IBB, iShares Nasdaq Biotechnology ETF lost 3.2 percent.

This market certainly has shifted so very defensively that it seems to me the market is trying to price in a very significant slowdown in growth. As much as the economic data has weakened it still shows expansion," said Adams.

It seems that the smarter investors have taken a more defensive tack now but investors shouldn't just dump stocks. Most investors are in a quandary on what to do. "I think the markets are thinking recession. It's a little early to get in, but it's late to get out. Why sell stocks now that have taken most of the beating they're going to take?" I think we 5 weeks of the new year, its too early to get excited about a new bear market.

One of the most important things to watch is the US Dollar. The dollar in the past week lost 2.6 percent, its worst performance since October 2011. But its losses helped stanch some of the selling in oil. Still, West Texas Intermediate crude futures were down more than 8 percent for the week, ending right above $30 per barrel.


"The technical patterns say we can't dismiss the possibility of going lower. It's a pretty weak little recovery rally, as well. It just seems people are willing to take a wait-and-see attitude rather than 'buy on dips' mentality. About 40 percent of the gains from the low has been from energy's bounce back," she said. "We haven't seen anything in earnings that generates a lot of optimism. The numbers are OK but exhibit a slowdown from where we were a few months ago. There's not a lot of reason to stick your neck out and take a risk."

Lets just say if the market breaks those January lows, the S&P 500 might want to go to test an important area right below 1,800. That level is key. Below there, and this bull market is in serious trouble, as in "HOLY MOLEY grab on to the life raft, lets get out of here!!!"

We would not be surprised that low from late January SPX 1,812 could get touched soon, and the  market, and has now lost it MOJO for now.

Even though the market is oversold there is no reason to call a bottom here. That would be stupid. ll 5 percent off the low of the year when there's even more technical damage than we had the last time stocks were at that level? Its sort of damned if you do, damned if you don't sort of levels here. So its better to wait we think. There is a saying for the last few hundred years with well known traders...that is "SO GOES JANUARY, SO GOES THE ENTIRE YEAR" Basically it means, if you have a positive january month on the stock market, the whole entire year should be bullish. But if you have a dismal and horrible january the whole year on the market will be BAD. If this was the case, we just had one of the worst januarys on records, and it would mean the whole year is going to be a nightmare for investors. Well, we shall see, but its a bit too early to just write off MR market here, so early in the year. 

If we get more selling in the weeks ahead, we could see the SPX 1,770 magnetize itself.  

We still have issues coming out of china, and the commodities market is a awful mess. 



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Thursday, 4 February 2016

warren buffet investments - warren buffet advice 2016

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warren buffet investments - warren buffet advice  2016

warren buffet investments - warren buffet advice
warren buffett investments - warren buffet advice


The stock market melt-down has many people shatting in their bedpan recently. But dear old warren buffett has actually be laughing all the way down. YES! That's right. Not only has he been laughing at people panicking in this market drop, he has been the first guy to stick his chest out and start buying.

After three more days of buying, Warren Buffett's Phillips 66 shopping spree is nearing a billion dollars for the year.

In a new filing, Buffett's Berkshire Hathaway reveals that on Monday, Tuesday and Wednesday of this week the company purchased another 1.7 million shares of the energy giant for almost $132 million.

Over 15 days of buying since Jan. 4, Berkshire has spent $964 million to add 12.5 million shares to its Phillips 66 stake.

The new purchases were made between $77.40 and $78.53. Average price paid overall for the January and February buys is $77.13.

At midday Thursday, PSX was up 1.8 percent to $80.56, giving Berkshire a very short-term profit on paper from the new shares of almost $43 million


Berkshire's 74 million-share stake is now worth $5.9 billion and represents around 14 percent of the company's outstanding shares. (You can follow the market value of this stake, and Berkshire's other publicly disclosed holdings, with the Berkshire Hathaway Portfolio Tracker.)


warren buffet advice, or any warren investment tips should not probably be taken lightly. I mean love or hate the guy, he has has some amazing success over his life as an investor right!? So take it with a grain of salt, no matter what, its always a good idea to follow what this man is doing once a year, especially on a year like this year when the market is slumping down a bit.  

The man always seems to be taking the wrong action from time to time, meaning when most people are panicking, and selling, he comes along and buys, and then months later it seems the novice investors sold too early, and he is sitting on the chair laughing and smiling all the way to the bank, screaming I TOLD YOU SO!, LOL. 



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Sunday, 17 January 2016

stock market bloodbath - stock market bloodbath profits guide


are we in a bear market
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stock market bloodbath - stock market bloodbath profits guide


stock market bloodbath - stock market bloodbath profits guide
stock market bloodbath - stock market bloodbath profits guide



Stock market bloodbath. That is the best way to refer to the stock market right now 2 weeks into 2016.

Here is a chart of the S&P 500 daily chart. OUCH! You can see it has formed some sort of an elongated wedge pattern so far. [chart below]





Its been a stock market bloodbath lately. But without realizing it, you could be sitting on a winning lottery ticket. Yes, its true.

The stock market’s bloodbath Friday was not the final flush needed to clear the way for a recovery, according to a widely-watched indicator of selling intensity.

Many technicians, as well as old-school fundamental investors like Warren Buffett, say that the time to start buying in a falling market is after signs of panic, or capitulation by the bulls. Well, if you are not seeing panic right now, we do not know what is.

But after the Dow Jones Industrial Average DJIA, -2.39%  plunged 391 points, or 2.4% on Friday--the biggest one-day percentage decline in 3 1/2 months--the New York Stock Exchange’s

The A50R Chart, which represents a value of overbought and oversold areas on the stock market, is clearly pointing to the market being very very CHEAP HERE. See the chart below. Currently as you read this post, we are sitting at 12.40. Its an area seen as been very very low. Normally we do not see these levels for too long. 







Does it mean the market CANNOT experience more selling. No!, that is not what we are talking about as lots of investors are panicking right now, and every bad bit of news coming out of china is causing some people to 'shit the bed pan' the last few weeks.

In other words, sellers tend to hit the sell button a little harder when the market is falling, then when it isn’t.

As an indicator the A50R indicator could be telling us that a big bounce could be coming to the stock market later in the year. And it could be one of those bounces that goes up 100 - 200 points rather fast. So you better be ready if that actually does happen.

Also On Friday, the NYSE’s Arms rose to just 1.791. That is a better sneak peek at what the market will actually do in the short term. You can get the latest chart in our LIVE VIP NEWSLETTER CLICK HERE!




In all my years, I actually cannot remember the market falling this hard after XMAS, or 2 weeks after the new year! It is terrible, and its wiped literally billions off the value of investments. I can recall several other times, the market GOT A SWOOP down early in the year, only to come back by the end of the year. 

Its probably a bit melodramatic to start predicting what is going to happen in DECEMBER 2016 here in JANUARY. Yes, lets not be pre-emptive, but so far this does feel a little bit different to 2008. Of course there are lots of brokers, and even main stream media telling you to get on the phone and SELL, SELL, SELL, almost everything. However looking back in recent history after big drops like that, early in the year that would be a big big mistake. 

Are investors in a state of PANIC! The quick answer to that would be a big FAT NO!, but are they really scared, well sure. When every you see significant sell offs in the market, it normally leads to other people who are heavily invested, to start a domino effect, and do what other people who are heavily invested in the market do. 

But when there is a bloodbath, or semi-bloodbath in the market, do the smarter investors start selling. No, what they do is see opportunity where other people are screaming FIRE! and heading for the exit doors. 

One of the smartest investors in the world, by the name of WARREN BUFFET was once quoted as saying. "buy when people are panicking, and sell when people get very very greedy" Its a good rule to go buy, and its one of his top strategies he has incorporated through bear markets, and bull markets to formulate HUGE FORTUNES.  


 I cover more and more technical analysis ==> HERE in our VIP members section.




WHAT IF YOU KNEW WHICH WAY THE MARKET WAS ABOUT TO MOVE BEFORE IT HAPPENED?  CLICK HERE To Join Our VIP ELITE GROUP  -- FREE!



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