Friends
Whether it has to do with mounting global pressures or the continuing series of headwinds we’ve talked about for many months now, stocks are really struggling at the moment. The selling appears to be somewhat indiscriminating and simply a move to reduce equity exposure by large institutional investors. The sentiment is extremely poor which is probably the best thing that the bulls have going for them. All in all, it’s a difficult moment for the bulls but as we always preach, it’s part of the process.
By the close, the Dow Jones Industrial Average was down 464 points to finish the day at 33,131. The S&P 500 was down 79 points to close at 4,225. The Nasdaq Composite Index was down 344 points to close at 13,037. Gold was up $4 to trade at $1,911 per ounce, while oil was up $.23 to trade at $92.14 per barrel WTI.
I mentioned yesterday that rallies are met almost instantaneously with selling. That tells me that those big players that I referenced above are not done re-allocating their portfolios yet and are using any rallies to trim holdings. These periods are difficult for all of us investors, but well thought out portfolios and keeping emotions in check have always been the recipe for dealing with them. In the meantime, let’s see how this week plays out.
Have a nice evening everyone.
