Market Takes A Beating... As Expected...
US market tanked today on a slew of worse than expected economic data exactly how I have expected last week. This was what I said to paid subscribers last Friday...
"If such an impressive GDP number failed to turn things around... what can? If not, how bearish can the way ahead be? That's the thing that is breaking the stock market now... every bad economic data depresses the market and every good economic data increases the probability of a rate hike and end up depressing the stock market as well. Under such circumstances, how could the market be reliably bullish?"
(Yes, I only publicly post my report every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!)
and exactly like I have predicted last week, the market went generally sideways for a few days before the bear trend resumed and tanked today. Like I said last week again, I hope nobody was caught in the few intraday bull traps last week. (My Master's Stock Options Picks subscribers on the other hand profited greatly today because of the remaining put options positions that we have prepositioned early last week! Join us now!).
As in every classic oversold day, bond yields tanked across the board and total equities put call ratio surged in favor of put options. Whenever that happens, especially within the framework of this being the 5th consecutive down day so far, I would be very careful about trying to be newly bearish because this is usually when the market "find value" and turn bullish a little bit. In fact, this is when I would be taking profit on a few profitable put options positions. This week is also going to be really volatile due to the two heavyweight economic number that we get every first week of the month; ISM index and the Jobs Report. Like I have said all week, I suspect the bullish impact of these numbers even if they turned out really well could be really limited due to how generally economic data has been less than ideal lately as well as how every strong number really does nothing but increase that rate hike fear. Either way, its not a good thing for the market. This is when I would be really careful about putting on new positions, whether bearish or bullish.
Market Crash Timer: ORANGE
For now, the market remains in short term and intermediate term bear trend within a primary neutral trend.
"If such an impressive GDP number failed to turn things around... what can? If not, how bearish can the way ahead be? That's the thing that is breaking the stock market now... every bad economic data depresses the market and every good economic data increases the probability of a rate hike and end up depressing the stock market as well. Under such circumstances, how could the market be reliably bullish?"
(Yes, I only publicly post my report every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!)
and exactly like I have predicted last week, the market went generally sideways for a few days before the bear trend resumed and tanked today. Like I said last week again, I hope nobody was caught in the few intraday bull traps last week. (My Master's Stock Options Picks subscribers on the other hand profited greatly today because of the remaining put options positions that we have prepositioned early last week! Join us now!).
As in every classic oversold day, bond yields tanked across the board and total equities put call ratio surged in favor of put options. Whenever that happens, especially within the framework of this being the 5th consecutive down day so far, I would be very careful about trying to be newly bearish because this is usually when the market "find value" and turn bullish a little bit. In fact, this is when I would be taking profit on a few profitable put options positions. This week is also going to be really volatile due to the two heavyweight economic number that we get every first week of the month; ISM index and the Jobs Report. Like I have said all week, I suspect the bullish impact of these numbers even if they turned out really well could be really limited due to how generally economic data has been less than ideal lately as well as how every strong number really does nothing but increase that rate hike fear. Either way, its not a good thing for the market. This is when I would be really careful about putting on new positions, whether bearish or bullish.
Market Crash Timer: ORANGE
For now, the market remains in short term and intermediate term bear trend within a primary neutral trend.
posted by Jason Ng at 7:23 PM
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