The Bull Rally Officially Over?
While traders like to maintain a tough exterior and state how red days are just another great opportunity, sometimes those red days are actually portfolio busters.
Obviously the market has dropped much worse before, but I don’t recall seeing so many individual stocks just get pounded this badly in one day. The action came mostly on the notion that the economy is weaker than investors thought (or just tried to ignore) and it doesn’t seem like hiring will pick up anytime soon, which stalls growth.
Obviously, fixing unemployment is key to any type of real economic recovery.
January employment report is due out Friday. You can only imagine what will happen if that number gets worse.
I don’t think anybody wants to acknowledge that the upward movement is done and maybe its not, but there are just too many signs pointing to at least a short-term bear market.
Besides the obvious economic evidence, the charts don’t look too well either. In fact, the charts called the upward movement over a couple weeks back.
1 year time frame of Dow
3 month time frame of Dow
When the market dips into the red there are usually great opportunities to buy… unless that red day is just a start of a bunch more to come.
Where do you think this market is heading?
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