Discussion in 'Trading' started by lylec305, Feb 2, 2018.
This is not a dip.....markets are still up for 2018....show me the Dow under 20,000, that's a dip!!!
I sold my PG position this morning. Hated it do it, but it broke long-term support and if this market goes lower (which I think it will), then it's really hard for any company other than perhaps Amazon to resist a strong downtrend. Still left the short calls on, but the closest strike is 88 and expiring next week. In any case, I worry about generic store brands eating into PG's margins. What was their last innovation? Tide pods?
What is driving the dip? A typical correction will right itself. The economy seems like it's firing off all cylinders, unemployment is down, interest rates are low. Corporate america seems to be fine, for now ...
Haven't done my weekly TA yet but as the US indices remain closed above the 50EMA, likely I will be putting buy orders in above today's highs.
That is not buying the dip. Buying the dip is buying NOW.
Based on the monthly/weekly charts and closing below the last 2 weeks closes, I think it will go down some more, lows of Nov 2016 of 2023 in ES should receive good support. If you look at the sped of price action or more like sharp angling going up, it was just a matter of time. Crude Oil going up so much last few months and U.S. Dollar dipping below 90 added to the fun. I am still long stocks but hedged equal value and long term short Indexes, been shorting long time and who knows if this was the end. But handing out huge tax cut to corps, am thinking this more of a further dip and maybe 50% pullback to 2450?
It will be lower on Monday, then rally a bit and then consolidate for the next few weeks. Record highs in a couple of months.
There's a lot of distance between here and 2023. That would be more than a 25% correction. I think it goes lower. Seems that this is about the bond market and rising interest rates. How is the Fed going to start unloading their balance sheet into a weakening market facing rising interest rates and a weakening dollar driven by continued budget deficits for at least the next decade? With higher interest rates, what will be the interest paid on that debt (as a percentage of tax revenue) going forward?
One should never buy the dip, one should buy the reversal.
There's many a slip 'twixt the cup and the lip.
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