The Major Indices Collapse
Today all the major indices collapsed as a result of the the 9% plunge in the Chinese stock market.
Above is a daily chart of the SPX. It didn't matter if I posted a chart of the Dow, NASDAQ or S&P because all the charts look the same. All the major indices blew right through their 50 day moving average but are still above their 200 day.
I'll be quite honest with all of you by admitting I am not sure what to make of today's action. My golden rule throughout the years is "when in doubt, get the hell out" and that is exactly what I am doing right now. I'm going to just watch the markets for a week or so until I get more of a feel which way this market is likely to go. I will continue to day trade but as far as picking which way this market is going over the next month or so, I haven't a clue and neither does anyone else at the moment because there are too many variables. You're better off waiting for the smoke to clear before making any big market bets.
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3 comments:
I've posted last week here in the comments that I expect market to tumble.
Frankly, I did not expect it to fall so soon and so much in one day, but the panic in the CDS market last week was hinting me that it will have to spill over to regular markets.
Not corporate CDS are going sour as well, so much more unwinding is to come.
Testing June/July lows later this week.
Obviously, I've made money today, but not much.
good call Sandro...you were clearly bearish...
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