It has finally happened! Once again, October proved itself to be the witching month for stocks. The market barometer of the Dow Jones Industrial Average plunged below its 200-day simple moving average (SMA). After falling over 600 points on Wednesday, Oct. 25 without an intraday bounce, fear swept the financial markets. Volatility spiked with the VIX hitting 26 as investors raced to protect their positions with derivatives. —Recommended Link— “It’s like getting 26 paychecks advanced to you in ONE LUMP SUM!” Executive Dividends are one of Wall Street’s best-kept secrets, paying out a small fortune in unannounced cash seemingly… Read More
It has finally happened! Once again, October proved itself to be the witching month for stocks. The market barometer of the Dow Jones Industrial Average plunged below its 200-day simple moving average (SMA). After falling over 600 points on Wednesday, Oct. 25 without an intraday bounce, fear swept the financial markets. Volatility spiked with the VIX hitting 26 as investors raced to protect their positions with derivatives. —Recommended Link— “It’s like getting 26 paychecks advanced to you in ONE LUMP SUM!” Executive Dividends are one of Wall Street’s best-kept secrets, paying out a small fortune in unannounced cash seemingly at random–and today, Nathan Slaughter shows you where to find them. Read more here. I am not afraid, yet… As regular readers know, I am a strong proponent of the 200-day SMA as THE major price support line. Not only is the 200-day SMA used by leading institutions, but it is also the only technical indicator with academic research indicating its worth. #-ad_banner-#While the 200-day SMA support was violated, the market still needs to trade below the indicator for several sessions before I start questioning my bullish stance. Often the 200-day SMA gets violated for a session or two then… Read More