Sequester is weighing on the Markets, you can read more about sequester here. In long run, it is good for our economy as sequester will enforce spending cuts. But spending cuts always come with pains, as we need to change our spending habits as a nation. Besides that Italy election also added to the volatility as Euro-zone issue is NOT resolved just kicked down the road. What should we expect next!!!
From mid-September on-wards, market was finding hard to climb any further. It established a range and kept moving in between. BUT in last two weeks, bad earnings guidance from companies has given signs of rollover or in other words "correction". How long shall we expect this correction to last?
All it takes is a week and market scenario changes. Last week was very volatile with wide swings as expected, but fortunately our history teacher (BPNYA Index) guided us well and we were out of the market before all the action unfolded. Remember, all we are trying to do is increase our "odds of winning" and "protect our gains" as well as avoid "major losses". Follow the guidance provided by BPNYA and in most scenarios we should do well...
After several weeks, we finally got a SELL signal. When everyone started saying market is due for correction, market kept going higher and after so many weeks we got the actual signal. That's why having a strategy/plan works in our favor. If we continued listening to news and TV noise then you would have exited market long back and missed all the remaining upside, Isn't it!!!!
Every dip in the market is bought consistently which leads to no meaningful pullback/correction. This also at times gives an illusion that market will keep going higher like this for who knows how long! But do not fall for such trap, element of surprise is the key Markets weapon. Market is overdue for a pullback/correction, getting in the market at wrong time can lead to losses...
Market seems to make several attempts to rally but after few days, the steam is lost and we are back to square 1. Euro-zone crisis is not easy to resolve and as every day passes, investors are loosing confidence. Hence we are seeing slow and contained selling. What does it mean for us!!!
|
Details
What is NYUD?
What is BPNYA?Archives
January 2020
Categories
All
|