Effectively a flat to positive market as the Financials continue to struggle to find their footing. Amazing directional volatility during the past several weeks. In a sense, today is welcome relief.
Downside Risk: Yesterday my brother asked me what I felt the downside risk is as we head into the fall. Complete "gut" feel based on some crude technical eyeballing is SPX 1,150 to 1,175. We hit about 1,200 in mid-July as a reference point [edit: had one too many zeroes on those!]. I'm not much on time projections, but if indicators continue on their current trajectories, lower lows would be registered through mid-to late September. More on this later. I have no fundamental basis to believe this has to or should occur -- call it internalized pattern recognition. It is not a market call per se; again, downside risk guesstimation. 12:10PM PST UPDATE: I'll be looking to exit that swing trade [discussed yesterday] - nice day. Normally I'd hold longer, but prefer to take profits quickly in this market. 12:40PM PST UPDATE: Apparently I wasn't alone in that thought! Testing VWAP, should hold.
Jeff Pietsch is a registered investment adviser in the State of Washington. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
This blog is for educational purposes only, and nothing herein should be construed as an offer to buy or sell, or as a solicitation of an offer to buy or sell securities, or to provide individual investment advice. Investing is risky and past performance, whether actual or tested, is no guarantee of future results. The author neither endorses nor warrants the content of this site, any embedded advertisement, or any linked resource. The author or his managed funds may hold either long or short positions in the referenced securities. Republication rights must be expressly granted by author in writing. Astrices (*) indicate a compensated hyperlink or product reference. Author is the sole owner of the "ETF Rewind," shares in the proceeds of "DV_indicators", and may exchange services in-kind with participant contributors.