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It has been reported that past week was the worst December in 10 years for the General Markets. I am hearing that depending on how it ends this week, it could even become the worst drop for the Dow in decades.
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This week I was thinking about the average person and their 401Ks. Why? I went to lunch with 2 friends on Thursday, and they said to me, " I saw the Dow was down 600 points! I know it'll recover, but wow, that is the 3rd time that I saw that recently. This is just normal sideways stuff, right?" Hmmm, Since October, the markets have plummeted and erased all of 2018's gains. Even though most know that the markets are shaky or 'having a rough spell' as my other friend mentioned, I just realized that most do not know that the final quarter of 2018 wiped out all of 2018 and then some. Depending on how their 401k is set up, there may be an awful lot of shock when the next quarterly statement is viewed.
I showed my friends the chart below as of Thursday on my phone and they were shocked. "I thought we were still chopping around at the highs?", my friend Danny said. Let's look at some charts....
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SPX WEEKLY - You can see that last February -April, the sell off was steep, but this one has been 2x that drop. It is now approaching the 200 weekly ma as a possible support. This chart helped my friends to see that the last 3 months of 2018 may have wiped out their entire year of 401k gains and even half of 2017, depending on how they were set up. They were shocked and unaware, despite hearing about a few 600 point drops on the news.
Read MoreWell, it started to get choppy and difficult in various sectors a few weeks ago, and then we went into full sell down mode in October for the General Markets. Miners were sideways and choppy, forming bases but difficult to hold at times, and suddenly many of those bases have been breaking out higher. It has been a rough ride in the Markets, even the crash test dummies are complaining, but today is Friday, the last trading day of the week.
We will be heading into a weekend that is followed by a 1/2 day of trading Monday ( what's the point?) and a closed market Tuesday, so let's take a look at a few things before this week of trading finishes up....
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Read MoreI think that we knew that the Fed would raise rates, and I think that we had a good idea that there would be a'Reaction'. So let's take a look at Wednesdays market action ...
SPX - This was my chart going into the FED WEDNESDAY. Day 34 Tuesday.
Read MoreToday is the FOMC Decision, and even though the rate hike is supposed to be figured in, These markets are stretching out and could see a sharp reaction when the time comes. Let's take a look at Tuesdays market action...
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SPX - This small candle with a new low on day 34 allows for a swing low with a move above Tuesdays highs (2573.99). If the FOMC Decision changes the markets direction, it is possible that we will have a DCL & even an ICL.
Read MoreThe Dow was down another 500+ Points, and we see the general markets are at new lows again. This is not a surprise to us, I covered my thinking in the weekend report, so lets do a review and how things are playing out. We also have the FOMC meeting this Wednesday, so we will touch on that...
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SPX #1 - I captured this after the first hour of trading and I posted it in the chat area. Each morning Gap higher ends up selling off. Would this be bought up into the close this time ?
SPX #2 - No, it closed slightly red. I have been watching the Cycle count in anticipation for a DCL ( ICL). I said that day 18 was too early and now we have a day 28 low. THAT might also be a bit early too, since many daily cycles extend to 30 plus days. This could just surge higher and be counted as day 4 Friday, but take a look at this...
Read More The outlook for the Markets has not changed from my prior reports with the trading on Wednesday, so today we will mainly look at some more Picks. I also want to look at Oil and cover something important with the Miners, so let's begin, this is a long report...
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