Tumblin’ Tuesday – Trade Off (Again)

Image result for wayne's world game off"Game off!

That's all it takes to erase half of November's gains in 24 hours (the Dow Futures are off another 200 points this morning).  Volume in yesterday's down day was double the average day in November and, other than November 20th, when the Dow dropped 50 points – it was more volume than any day in November as well.  

This is not a good way to start the month – especially when loast December, the Dow dropped 4,500 points into Christmas.  So far, this is only 400 points yet most traders have already forgotten what happened last Christmas and are trading like the markets only go up and up and up – buying stocks at ridiculous multiples in hopes that someone even stupider will come along and buy it from you at a later time – but what if that time never comes?  Then you are the greater fool!  

We were bored waiting for the sell-off so we initiated some small portfolios, using just a small percentage of what we cashed out with in September but, if we drop another 500 points on the Dow and fail to hold 27,000 and fail to hold 3,000 on the S&P – I think we may have to close those down already and wait until we find a proper bottom to get back in.  

Trump is at the NATO meeting – which means he's not meeting with China or his handlers in Russia – so a mixed blessing there but there's a looming Dec 15th deadline on trade and no progress is being made and that is spooking investors.  Trump also has no friends at the NATO meeting – even Boris Johnson won't talk to him as he's facing an election and people already think he's "too Trumpy."

 

 

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