by Ian Harvey
December 27, 2018
The stock market direction has been constantly down for quite a while; but yesterday saw the stock markets stage a miraculous comeback following their worst-ever Christmas Eve.
Members of Stock Options Made Easy have done very well this month from the market pull-back – read…..
Stocks fell on Monday, this week, with all of the major indexes giving up -2% or more, despite the fact that the U.S. economy is on a sound basis with record employment, due to several factors…..
There was even an argument that the S&P 500 had entered bear territory - a bear market begins when a stock or index falls 20% or more.
However, the stock markets surged yesterday with the Dow posting its biggest daily point gain ever.
The Dow rose 1,086 points, gaining 5%. The S&P 500 also soared 5%, and the Nasdaq was up 5.8%; the biggest percentage gains for all three indices since March 2009.
What drove the stock market higher? It appears to be a simple case of “no news is good news” – on top of an expected low volume trading!
Where to Now?
Good question! This is anyone’s guess at the moment.
There is only one certain thing about the market at the moment – it is the uncertainty!
Just because the stock market had one good day does not mean that this is the trend for the future. The market, despite Wednesday’s rally is still close to entering a bear market, which would be an upset to the longest running bull market since 1931.
Our Strategy This Week…..
So far, this week, we have advised our members to “enjoy the holidays and take a break” – “be happy with the profits made so far this month” - and wait until the market decides to settle down to some sensibility before continuing trading.
Who knows where the market will head today?