Thursday, October 9, 2014

Market Commentary: DOW Closes Down 335 Points, SP500 Closes Down Two Percent

Market Commentary: DOW Closes Down 335 Points, SP500 Closes Down Two Percent



This is a great article about the 335 point down day for the Dow on October 9, 2014.  It certainly looks like the stock market is rolling over, but it is too early to say just yet.  Gary said he went long on a couple of reverse ETFs for protection.  I think that is a very good idea, and I plan to buy SQQQ, the Nasdaq 3x short, in the next few days if things don't turn around.  Even while the U.S. economy is doing okay, market sellers won't let go on the idea that Europe will bring down everybody.



Gary brought up other good points about watching the negative numbers of the bullish percent charts $BPNYA (NYSE) and $BPSPX (S&P).  The NYSE bullish percent is at 49, and a reading below 44 will probably signal a market crash.  If that happens, it could be months before the stock market recovers because the golden goose will have been killed, and retail investors will be very slow to return to the market.


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