Nasty Intraday Reversal, Stocks Lower
Filed Under Market Commentary |
6:30amEST Stocks stage a late day bearish reversal.
Bulls took charge staging a nice run in the early part of the session. It looked like the market was going to overcome some mighty odds and break higher. However, by mid day stocks began to turn weak and lacked the proper support to continue the intraday uptrend. Like we saw on Tuesday stocks were sold hard and fast into the close. The overall trend continues to be down and it looks like the very short term trend has no shifted to the downside.
Happy Chinese New Year! I do believe the Chinese markets will be closed the next two days and will return Feb. 11. If we continue this downward momentum it will be a very tough day when the Chinese markets come back online. Since Feb. 1st (close) the Nasdaq is down 5.58%, 4.37% down just this week! I’d be very weary if I were in those markets at the moment.
Cash is King at the moment in this market. If you are new to the market I would suggest that you sit back and watch how stocks react in this type of an environment. Remember, Wall Street wants you to trade, it needs you to trade. Be above the Wall Street machine, the noise is just that…NOISE. It is useless to over trade in this environment as there are not many opportunities to the upside. Be patient and protect your capital!
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