We're gonna make this a quick daily because myself and about 250 eTorians are about to get on a plane for some much needed R&R.
Today's Highlights
- Bear Season
- Where's the Support?
Market Overview:
Wes is right! The bears are out all over the markets. Stocks, commodities, Cryptos everything is down.
Gold and oil are seeing some declines and Wall Street is currently reeling over the tech stocks.
They call them the FANG stocks, which stands for Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL). In this graph, we can see the percentage gain from the beginning of the year.
The drop over the past few days is significant and all the buzz is about whether it's simply a much-needed correction or the start of something bigger.
From me, I'll just say that the balance sheets of these companies, nor their outlook for growth, has not risen 30% since January. However, if Donald Trump manages to pull out of his slump and gets the tax and regulation reforms that he's looking for, the FANGs will be a force to reckon with.
The crypto markets are now going on 48 straight hours of losses but it does seem a mild recovery is underway.
Bitcoin saw a massive drawdown of $850 since the all time high on Monday. So far, this correction is actually pretty tame considering we saw a $920 correction just three weeks ago.
The good news is that we've found some support at the rising trend line (blue) but there is a distinct possibility that we could break a bit lower towards the dotted yellow line at $1900 per coin.
Either way, we need to understand that this is a high risk market and if you're feeling the fear we strongly recommend to diversify your portfolio into less risky assets going forward.
Disclosure: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.