Hello All,
As we noted in our Morning Call webinar, we’d likely have an update on the way this morning.
Intrigue and concerns have both been ratcheted up today with the news of an arrest that could impact US/China trade relations and that, along with other issues, has US equity markets under heavy pressure at the moment:
At one point, we saw the DOW futures indicating a 500 point drop, however, they’ve recovered a little from that low. Regardless, overseas markets are down by 2.5 to 3% so we can see that the rest of the world is also very jittery. That also means that the selling in the US could intensify if it is going to match parts of Asia and Europe. Here’s the situation:
As we noted, we couldn’t find a fresh and safe bullish name to work with on Tuesday and now we know why. However, despite many bear names being covered this week, and the markets looking heavy, we’re not immune to risk! If equity markets open as ugly as it appears they will, we could be entering trades after some of the reward potential has been removed but with the risk side of the equation having increased. So, be careful out there!
Finally, a decisive break below $260.00 likely means about another $20.00 of drop to near $240.00, so, that would be the “whoosh” we’ve been wondering if we’ll see.
More when warranted!
Thanks,
Wayne