A bear market need not always crash. Sometimes, it can go through a slow motion deflation History provides us with 2 good examples: the post-Subprime crash and the post-Tech Bubble correction. Better not to have preconceived ideas, just react accordingly.
Day to day price action suggests that US stock indices are struggling to hold on to a 10% level off 52-week high. This level is associated with ‘correction’. At 20%, it’s bear market. In absolute terms, this correction is horrid. It dwarfs ‘Black Monday’ on August 24, 2015. Delusion or meaningful?
4 charts that says something is brewing. If the signals are true, XLE is a leading indicator which we will see some WTI, index moves in the near future.
On 09 September, US stock indices fall most since Brexit with Real Estate and Utilities as loss leaders. These sectors worry investors most with utilities’ loss pointing to a potential broader market correction.
We look at how 4 US stock indices DJIA, DJU, DJT and IXIC performed in 2000 which was an election year for the 43rd President of the United States to attempt this very commonly asked trading question ‘Will the stock market fall in an US Presidential Election Year?
My answers to these questions: 1. Is there an US presidential election effect? 2. Can I short the Dow Jones Industrial Average DJIA? 3. Will DJIA go higher? Log-in required.
Everything looks good from the candlesticks and price point of view until you overlay the Dow Jones Industrial Average (and the Fed’s rhetoric) into the picture.