Is ‘Reality’ Shifting The Market?
News media lit up the airwaves and digital streams today as the market took a nosedive.
The Dow closed at 26,652.33 points to fall 1.31% (dropping 353.51points on the day). The tech-heavy Nasdaq dropped to 10,461.42 points for a 2.29% dive while the S&P 500 tumbled 1.23% to 3,235.70 points.
Dire media descriptions of the day’s unfolding sent traders scrambling for answers and exit options.
But was this a big shift, or another example of how not to follow the crowd and the news?
Certainly there was a rash of selling that hit the market. Tech stocks suffered during the session amidst lofty analyst and trader earnings expectations.
The reality is, today’s event was a “normal” part of trading.
The markets were clearly under selling pressure. “Why” the pressure happened isn’t relevant.
As the market moves, seasoned traders adapt and pursue profitable opportunities.
A long-held truth in trading is: First price, then news. The news doesn’t drive price, price drives the news.
Traders using tools within well-planned strategies knew they could be wrong today about market direction, yet still push for profits. It’s all part of the Simpler Trading way of taking advantage of fast-moving markets in any direction.
We Saw: a sell-off across the board —
- Tech darlings take hits, even with strong earnings reports
- News media heralding dire consequences
- Futures creeping to the upside in early after hours
We’re Watching: for early Friday signs of market direction —
- Whether Friday repeats Thursday selling
- A repeat setting the stage for a hard fall Monday
- Key supports that could signal a turn through the weekend
Does it make sense to “see” price moves before they happen? Learn about catching “pops and drops” in a volatile market.