Stock Market Review | Bulls on Wall Street

Stock Market Review

 

Dow: -2.12%
Russell 2000: -2.38%
S&P 500: -2.43%
Nasdaq Comp.: -2.59%

 

Lot of weakness in the markets this past week.  2% in the market was dropped right after the election in reaction to the fiscal cliff issues.   Its been a slow bleed the last couple months the market  tries to bounce especially with the fed buying operations happening multiple times a week but that only seems to slow down the bleeding instead of us getting that quick 1 week capitulation.  As of right now all key support levels have broken including the important 200 day moving average.  As of right now defensive posturing is a must and we are in capital preservation mode till the price action continues.  This is a good time to cut down your position sizing and tigthen up your risk as the moves both to the long and shortside have become choppy.   The fact that the market couldnt even muster a decent bounce at such large support levels leads me to believe that lower prices are in the cards unless we get a news event that triggers a squeeze (such as congress working out the fiscal cliff stuff).  these rumors though will make trading very tricky as it will cause the market to have random spikes & fades.   Right now protect your bankroll till the action gets more predictable

 

 

[screencast url=”http://screencast.com/t/YyQpMAef” width=”” height=””]

Leave a Comment