Mattonomy

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Posts Tagged ‘S&P’

A Top? Or a Correction?


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Did you see that? The market is falling off the cliff today. Honestly, we have been in rally mode since November without a meaningful pulback. The market is clearly in a overbought territory. A correction is healthy and welcomed. However, I do see some support in USD which means there can be more pain coming in the stock market. Greece is in the blink of defaulting its debt. The Eurozone is going to have a hardtime trying to figure out what to do. Currently, outlook on Greece is negative and any further downgrade can cause a ripple effect to the entire Eurozone. With traders worrying about the credibility of the Eurozone, the Euro is going to have a hard time finding support. This is where the USD may gain some strength.

Whether or not this is just a correction or a market top is way too early to say. Market top tends to take a few months to unfold. I expect this year to be a trader’s market and hence, the market is going to be quite volatile unlike last year where you can buy anything and it would go up. Proper risk management is the key. Good Luck my friends.