US Market Volatility

Did it start? is the cycle that accurate? should we run and hide? liquidize to cash? – well, not just yet…

Yesterday the markets went into a massive drop as the Dow Jones went into an 830 points drop, the S&P went into a 3.29% drop and the Nasdaq tumbled by more than 5% – and it continues.

Today the headlines around the world show stress by the majority of the investors – and especially by Mr. Donald Trump that continues his attack on the FED monetary policy and states that: “The Fed has gone crazy” – https://www.marketwatch.com/story/trump-says-the-fed-has-gone-crazy-after-the-dow-tumbles-830-points-in-one-day-2018-10-10.

Investors continue to be rattled by the new market conditions of rising interest rates as we stated here throughout the past 3 months over and over again – now payment day has come.
https://www.marketwatch.com/story/tech-stocks-plunge-because-investors-are-nervous-here-are-3-reasons-why-2018-10-10

But it’s not “Dooms Day” just yet as the market is still in the range of a “healthy correction” and the long-term trend was not breached yet as the chart below will show you – but it is dangerously close to it…

DJIA 1110 chart
Dow Jones

As the Dow Jones gets close to 25,000 as a first level to trigger warning sings followed by the February low of 23,400-23,500 is where trader/investors should start considering getting protection on their accounts in safe-haven assets/Put options/Inverse ETF’s/10-30 years bond/etc..Since money left the stocks market and started diversifying towards new areas one might consider taking an early visit to new investment ideas.


The apple falls down from the tree

FAANG stocks tumbled yesterday by up to 5% drops in these heavy stocks as all of them without exception suffered high sale volume which affected the entire market – whoever followed our reviews in the past 3-4 months was ready beforehand and was able to make the necessary adjustments – on time.

Apple stock chart 1110
Apple

 

Amazon chart 1110
Amazon

Facebook – has more trouble than any other FAANG stock as the company is facing a possible fine that can amount to 4% of its annual revenue and that can be a “Game Changer” for the stock
https://www.bbc.co.uk/news/technology-45706809

FB Chart 1110
Facebook

 

NFLX 1110 chart
Netflix

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