Which Wall Street Incumbent Do You Agree With???
The stocks market tumbled on Friday and closed at session lows. This was the worst Thanksgiving week for the stock market since 1939. U.S. Manufacturing PMI for November came in at 55.4 which was lower than economists’ expectations of 55.7. Basically Red October has returned in November. So where are the Markets heading, analysts opinions go from one side of the spectrum to the other side of the spectrum. Let me give you an example of what I'm taking about.
Prudential Financial’s Quincy Krosby has advice for investors: Let the stock market volatility work for you. She’s confident the market’s wild swings will ultimately subside and generate strong upside. “If the sell-off continues and it deepens, it’s going to provide tremendous opportunities as the market settles down,” the firm’s chief market strategist said Monday on CNBC’s “Trading Nation.”
“You may want to take a look at the ones that have been really beaten down,” said Krosby. “Cloud is not going away. Cybersecurity is not going away. But nonetheless, they’re going to have to probably sell off more as we see the tech names just basically being a source of funding perhaps for hedge funds right now. But this, too, shall pass.”
Investors should sell their stocks now if they expect the Federal Reserve to hike interest rates next month, CNBC’s Jim Cramer argued on Tuesday. “If the Fed moves in December, you’ll wish you sold at these prices,” Cramer said on “Squawk Box.” “There’s nothing good here.”
Nearly every sector is in a “capitulation phase,” with the exception of health care, said Cramer. “There’s just a lot of bad. I mean I’m not going to hide it. There’s just a lot of bad. It’s a bear market.”
You know what they say about opinions, they are like a$$holes, everyone has one. The only thing that matters is price action, so lets analyze the charts using just pivot points. Pivots are a turning point in price. A pivot high is a particular pattern where you have a candle that has made a high while the candle just before and after it would have both lower highs and lower lows than the middle candle. A pivot low would be a low surrounded by candles that made higher highs.
The trend is down on the lower timeframe, sideways on the intermediate timeframe, but still up on the larger timeframe. The critical level to watch is the S&P 500 is the $260 level. If this level is breached, the chart suggests price will go lower to at least the February lows. It will also mean that the trend on the intermediate timeframe will also be down. If the February lows don't hold, the chart suggests to start shorting the Markets on a pull back.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
All I can say is, "YIKES."
Been Bearish for a while now, pressing it intermediate term. No reason to be long below the 200 day MA
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We just need confirmation at this point.
So crazy that many are surprised at the price action given the years of higher prices we have seen in the markets! They forget that the ride down is much quicker than the grind higher. As institutions continue to delever retail investors are being caught in discount shopping but the floor will fall beneath them. Still a ways to go before I consider stepping back in. I have now liquidated all positions, even the shorts to enjoy the rest of the year and work on some general asset allocations I am considering...
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Great call, I do think the Markets pusher before going down as the Smart Money hasn't liquidated all their open long positions. Should be interesting either way.
Have a nice Weekend ...