Hope you all enjoyed your Thanksgiving. I sure did! While I am still recovering from the turkey, gravy, and stuffing I thought I would take some time to share my opinions on the markets. So here we go:
While the recent scare from Dubai created a scary sell-off in the market (almost a black swan event), I personally think it was overdone. The news had come out Wednesday late and got no instant reaction. However, once the media started covering it over thanksgiving day, it hyped an over-reaction from the market on Friday with the DOW, S&P, and Nasdaq all gapping lower at the open.
We are all aware that the fundamentals of the economy when it comes to employment, retail, real estate are extremely bad and have not improved. It is this fear in the eyes of the consumer who has been constantly been hit with ponzi schemes, hike in credit card interest rates, high gas prices, lower real estate values that will create the next crash in the stock market.
In my personal opinion, we are long due for a correction from a technical standpoint (let alone the fundamentals). Don’t hold your breath though as until there are enough bulls on one side of the trade, we won’t see the trend change to the downside.
I would however caution you to be careful on the long side and if you do get into trades to manage them tightly. I will publish a more detailed analysis soon.