Wednesday, November 07, 2012

Post Election Verdict of the Markets

The Markets have spoken.  The verdict is clear post US election.  Stocks sold off big time.  Today's sell off should not come as a surprise.  Prior to this day, several leading stocks like AAPL and GOOG were under distribution, markets made new highs on low breadth and was trading choppily and were in correction mode for the last couple of weeks.  If you heeded my advice you would have moved to cash or in net short position a long time ago.  SP500 and Nasdaq down more than 6%, RUT down 7% plus, It is going to take time for this market to settle down and provide any buying opportunity.  Having sold off big time, the next logical move for this market is a bounce which should provide very good shorting opportunities.

No comments: