Sean HymanKeymasterSeptember 4, 2020 at 9:12 AMPost count: 5577Sean HymanKeymasterSeptember 4, 2020 at 9:16 AMPost count: 5577Sean HymanKeymasterSeptember 4, 2020 at 9:19 AMPost count: 5577
S&P futures broke below that trend line, so far. Selling intensifying again as its going back into a “fast market” like yesterday. A fast market is where there’s so much activity that quotes are changing sometimes, multiple times per second due to unusually strong activity/volume. At toppy periods, it’s a sign of more people panic selling.ThankfulParticipantSeptember 4, 2020 at 9:44 AMPost count: 308
Never ceases to amaze me how right Sean is. This is just the latest example. Sean, you gave us the 2200 level on the S & P during the last downturn. Do you have an update to your long term view seeing as the S&P has maybe so maybe not finally now gotten through Wave 5 vs March?Sean HymanKeymasterSeptember 4, 2020 at 9:48 AMPost count: 5577
Addressed that in yesterday’s video. No one will know how far/how bad the bear market gets. We know they historically drop 30-60%. There has been one or two occasions where it was worse. With the speculation being even more rampant this time than some bear markets, I don’t anticipate it being only a 30% drop off of its highs.
Therefore, one could put in an order for 40% off of the market highs. 50% and 60%. Or 30%, 40%, 50%, etc. The point is just to buy after massive market selloffs and to average down. No one will catch the bottom. But rather, value can be captured.
Typically, once the S&P 500 starts to trade back up above its 50-week moving average again (after the previous long decline) then the bottom is usually in. The longer you sit on your hands, likely the better.
Be sure to check out yesterday’s video where I addressed all of that. You’ll usually find that I’ve addressed many questions even before they arise, in those videos.ThankfulParticipantSeptember 4, 2020 at 9:50 AMPost count: 308
Thank you! I did watch the video, obviously light needs to dawn on marble head multiple times for the message to get through sometimes. Much appreciated!Randall BeamParticipantSeptember 4, 2020 at 11:05 AMPost count: 102
GREAT JOB – your portfolio held up well this morning.Russell BarrettParticipantSeptember 4, 2020 at 11:42 AMPost count: 25
Hi Sean. I’m out of six of our current picks from selling early to build up my cash reserves. If this drops 30% or more, should I consider getting back in to some of these if they drop a good percentage? Or should I just wait for new picks? RussSean HymanKeymasterSeptember 4, 2020 at 12:01 PMPost count: 5577
You’ll likely do better keeping your cash for greater opportunities as the market drops overall.Sean HymanKeymasterSeptember 4, 2020 at 5:01 PMPost count: 5577
Many times, before a sell-off there will be a ramping up of the upward momentum just before the sell-off. You can see the change in the angle/pace of the NASDAQ here. Right now, it’s closed just a hair above that trend multi-month trend line. We’ll see where it goes next week.Sean HymanKeymasterSeptember 4, 2020 at 5:03 PMPost count: 5577Sean HymanKeymasterSeptember 5, 2020 at 12:22 PMPost count: 5577
The S&P 500 closed right at the 20-day moving average (yellow arrow). With the RSI coming out of overbought and the MACD diverging lower, it could propel the market lower over the coming trading days and, if so, could accelerate the selling in the overall broader market.
Also, notice the risks that the chart is showing us by how far the price is still above its 200-day moving average (emphasis with the red arrows…top of the market move relative to the moving average).Sean HymanKeymasterSeptember 8, 2020 at 12:43 PMPost count: 5577
The NASDAQ is breaking below a multi-month trend line and the S&P 500 is teetering right upon the edge of its trend line. If it breaks, it could increase the selling volume in the overall market.
Lots of NASDAQ leaders taking it on the chin today: FB, AMZN, NFLX, GOOGL, AAPL, MSFT, TSLA, etc.
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