After the horrible global stock market fall on Friday and this week, a lot of folks are left with nasty accounts and bald spots on their heads after they've been scratched continuously out of nervousness. But to be honest; the stock market crash was predictable and very abvious. It was not a surprise as most traders and investors state.
The market has pushed up for about 2 months or so, posting ridiculous gains, and I knew that a market that moves in a straight line has to overheat soon and will need to cool down. However, that was not the case with this bull. It continued climbing until it got really unhealthy. I always tell people that a market that does not have regular and reasonable pull backs, is not a healthy market.
When the traders least expected the retracement because they got fooled by the move higher after the tax bill was announced in December, that's when it arrived. The bears boarded the market. To some of us, this was the long awaited pull back we'd been anticipating since November 2017. Investors have been looking for this buyable dip that has just occurred. Stocks around the globe are all at discount prices, and this is the right time to own them. The selling pressure in the market has run out of steam, authority has exchanged hands, and the bulls have it. Sell-off's are usually quick and not in slow motion.
These are charts of the standard or the pace setters for the global stock market: The Nasdaq 100, Dow Jones and the S&P 500. Always know that what we trade in the market is price, and these are the price targets investors are eyeing after they have bought this dip:
