After a pretty boring day the last hour was insane.Dick Bove downgraded WFC and then you know what hit the fan.My question is this just a one day selloff or might this signal a market reversal?..Thought's please :frown:
Results 1 to 7 of 7
One day sell off or Reversal ???
After a pretty boring day the last hour was insane.Dick Bove downgraded WFC and then you know what hit the fan.My question is this just a one day selloff or might this signal a market reversal?..Thought's please :frown:
The WFC downgrade was only part of the issue. The sharp rise of the dollar was a major contributor to the sell off imo. The more the dollar is worth, the less stocks are and vice versa. A large contributor to the inflation of stock prices has been the decline of the value of the dollar. the EUR/USD started a sharp decline around 3:15pm (indicating a rise in worth of the USD), coinciding with the drop in the markets.
Earnings tonight/tomorrow coupled with direction of the dollar will tell what can be expected tomorrow imo. I was short faz today and got the alert about WFC and saw the drop in EUR/USD so I covered for a profit before FAZ skyrocketed which would have been a large loss for me.
You are right about today being boring. I have no idea about tomorrow because the dip buying has been ridiculous. Seems alot of money recently is moving into bonds from equities.
I have noticed most of the stocks I trade have been ranging/toppy. I hope today is a reversal.
Very well said jlcnuke. You are very right to say that it all depends on the direction of the dollar. My guess, based on the sharpness of the advance, is that one of the key foreign nations, most likely Japan, intervened by buying up dollars. The EUR/USD price passed the psychologically important level of 1.50 and this may have been intolerable to some central bank.
If my guess is correct, the dollar may well stabilize around this level for a while, unless more interventions occur. This means, to answer the question, that this may be a one shot affair that won't exacerbate further declines in the stock market.
Eventually the market will correct quite a bit, but this may not be the beginning of that correction.
correct. it did feel a little aggressive right toward the end, but it's not really anything abnormal at this point. my guess is there is a lot of money in the market to test the dow 10,000 level and any dip below that level brings somewhat exaggerated selling.
I think that we will trade in a range from S&P 500 1075 to 1100. Great for swing trading. As Chinaman said, buy the dips. Bail when you have profit or when SP approaches 1100. watch 1080 on the s+p closing below that line would be very bearish.
Was long FAZ since last 2 days, had to sell it today.
I got in some longs BGU, AIG. Holding AGU since last few days! Wild market action, running over people :bike:
Was looking to get small AMZN before market close but then I totally forgot about it.......... :|
