A sound sleep gives way to NIGHTMARES. Well, that’s how it works. Remember that long ago talk about a low VIX, investor complacency, Goldilocks markets, etc? Oh wait! That long ago talk was………..Monday. Surprising ALMOST everyone that the markets can indeed go down, the major averages began down and finished much lower today. The Dow, S&P and NASDAQ all experienced the “wrath of the robots” and their selling. Of course its all President Trumps fault otherwise we would still be drifting higher on the backs of just 5 stocks (the FAANG’s). Ah, dreams and nightmares. Such a fine line.
Of course before we were even into the first hour of trading there were “smart people” saying it was a buying opportunity, selling was “over done” and even if there was something going on in Washington all would be fine………….sometime in the future. Hmmmm, caught long again.
Ironically with all the talk of tech leadership, the KBW Nasdaq Fintech Index (KFTX) suffered more than the other averages by dropping 23.33 points to 1142.76, off 2%. (I told them to stick Amazon in there)
So, is it a ‘dip’ to buy or is more selling coming? Might get a “pop” up in the morning BUT as I have been preaching/warning/etc…………”sell in May and go away”. Nine years, high valuations, Trump premium, slowing economies (China) all don’t go away in one day. Just checked the calendar and its still MAY. Just saying. Have a great evening.