Volume Dynamics Specialist
Posted 06 November 2016 - 11:04 PM
El-Erian: 4 things to know about the longest stock market selloff since 1980
By extending daily losses to nine straight days on Friday, the S&P index experienced its worse losing streak for 36 years. Yet, in terms of the cumulative loss experienced by investors, this is still one of the mildest multi-day selloffs. Indeed, Friday’s loss was just 0.17%. So rather than just be captivated by attention grapping headlines, here are four things that investors may wish to know
see link
Member
Posted 07 November 2016 - 12:08 AM
El-Erian: 4 things to know about the longest stock market selloff since 1980
By extending daily losses to nine straight days on Friday, the S&P index experienced its worse losing streak for 36 years. Yet, in terms of the cumulative loss experienced by investors, this is still one of the mildest multi-day selloffs. Indeed, Friday’s loss was just 0.17%. So rather than just be captivated by attention grapping headlines, here are four things that investors may wish to know
see link
From the link:
3. While not big, the recent equity selloff has added to the (correct) sense that it is very hard for investors to secure high returns just from exposure to general market indices. As demonstrated again this year, it is a challenging environment for diversified, index-based buy and hold strategies. Good individual name selection and timely tactical repositioning have been – and will remain – much more important drivers of total return.
Yup, timely tactical repositioning...
And the Nasdaq in this decline reached on oversold level equal to the Brexit shock. On the chart below see the circles on the lower green horizontal lines (Brexit on the left and now on the right) and note what happens when the index (the green dotted line) comes out of that oversold level. Can't quite say buy the dips until the NYSI turns up but this is probably the bottom and possibly we could see the highs again if this generates a rally similar to post Brexit.
Good luck and good trading.
P.S. Great stuff on GS as a bellwether, by the way. Hardly pulled back at all. Maybe the "powers that be" do indeed live there. 
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."
Member
Posted 07 November 2016 - 06:31 AM
El-Erian: 4 things to know about the longest stock market selloff since 1980
By extending daily losses to nine straight days on Friday, the S&P index experienced its worse losing streak for 36 years. Yet, in terms of the cumulative loss experienced by investors, this is still one of the mildest multi-day selloffs. Indeed, Friday’s loss was just 0.17%. So rather than just be captivated by attention grapping headlines, here are four things that investors may wish to know
see link
From the link:
3. While not big, the recent equity selloff has added to the (correct) sense that it is very hard for investors to secure high returns just from exposure to general market indices. As demonstrated again this year, it is a challenging environment for diversified, index-based buy and hold strategies. Good individual name selection and timely tactical repositioning have been – and will remain – much more important drivers of total return.
Yup, timely tactical repositioning...
And the Nasdaq in this decline reached on oversold level equal to the Brexit shock. On the chart below see the circles on the lower green horizontal lines (Brexit on the left and now on the right) and note what happens when the index (the green dotted line) comes out of that oversold level. Can't quite say buy the dips until the NYSI turns up but this is probably the bottom and possibly we could see the highs again if this generates a rally similar to post Brexit.
Good luck and good trading.
P.S. Great stuff on GS as a bellwether, by the way. Hardly pulled back at all. Maybe the "powers that be" do indeed live there.
GS ,as discussed here earlier and mentioned the 190-200 level, it is well on its way to target.
with this AM turn up we most likely put the 40 week low behind us.this was just a minor setback and the election being just a DISTRACTION.but TWT.
Volume Dynamics Specialist
Posted 07 November 2016 - 08:31 AM
Let's just see what this little trial balloon is made of, I'm skeptical.
Member
Posted 07 November 2016 - 08:40 AM
Let's just see what this little trial balloon is made of, I'm skeptical.
in this business it pays to be skeptical.
also especially skepical of the majority opinion.
Volume Dynamics Specialist
Posted 07 November 2016 - 08:56 AM
Well, here's what I would point out... you have 9 days of downward compression which reflects the shallow amount of loss...
You have had a relatively stealthy strong support... UNDER LIGHT VOLUME CONDITIONS.
So there's not a lot of damage relative to the amount of TIME... E-wavers might think of this in a longer term perspective as a flat, a wiggle.
Time will Tell.
Bottom line, now we started to move into ANTICIPATION mode ahead of the "mostly digital" result on Friday, that bounce failed... but they destroyed that this morning with the Bill Dudley Gap-o-La. The outcome now is either Candidate A or B. We could still see one more round of UNCERTAINTY based on fast-moving hysterical news events...
If VOLUME shows up at any time, everyone needs to be on alert.
(Guidance Updated on Todays Forecasts)
Edited by SemiBizz, 07 November 2016 - 09:00 AM.
