Investment Markets

Stock market, bonds, currencies and commodities. What's happening and how they work.

Stocks reverse, fall hard

The stock market lost a modest gain, selling off hard into the close as the Russell 2000 fell 1.17%, the Nasdaq .63% and the TSX .42%. Volume was higher and well above average. The reversal from a new high in heavy volume is a bearish reversal and frequently a sign of a top. Many stocks including GWPH also staged a bearish reversal but most leading stocks remain in good condition including AAPL which hit a new high.

Early session a tweet by us on Twitter, suggested a decline in North American markets, sparked by issues with Greece's bankruptcy, was a buy opportunity. This may be the reason for today's sharp decline, but assuming anything is speculative and execution requires selling first to take advantage of any bounce.

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Why boring stocks are good ones!

 

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Why stocks keep getting hammered

DDD is getting hammered today, hitting a new low in a deep sixteen month correction. The selling highlights an issue with weak stocks and the stock market in general.

The longer weakness prevails the greater the chance of an investor with a big position caving in and selling their entire position. Inevitably heavy selling destroys the stock in another session of weakness.

As tempting as bottom fishing in the stock market is, it's dangerous. Avoid stocks trading near their lows in deep bases. It's too risky. The good news is it's unnecessary as the stock market provides plenty of choices some of them undergoing heavy buying.

To contact; info@investorbootcamponline.com

Commentary including ideas, historical and other market indications are not investment advice. Statistics and other data may be from other sources and may be inaccurate or incomplete. See Full Disclaimer.

The market is the news!

 

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