Scalper1 News
Major averages got hammered yesterday on substantially higher, above average volume, closing near their intraday lows. The Russell 2000 Index has undercut its late August lows while the S&P 500 and New York Composite are roughly at their late August lows and the NASDAQ has more room to go on the downside before reaching its own late August lows. Biotechs dumped again as well, leading the charge to the downside as Congress is set to go after Valeant Pharmaceuticals (VRX) for what it considers to be “overpriced” drugs. Keep a close eye on profits from any ETF short positions as falling markets often bounce hard. The flip side is that the market could be embarking on a second leg to the downside in a developing bear market, although that is not something that can be determined in real-time. Even the best investors are unable to see in advance how far a market correction or bear market will progress. We remember quite vividly how Bill O’Neil, in June of 2000, declared the market to be in a new bull phase based on the precedent of October 1962 when the Cuban Missile Crisis was finally resolved peacefully. As we know now, that bear market did not end in June of 2000 and mark the start of a glorious new bull market – it was only the first false rally in a brutal bear market that did not find a bottom until late 2002. Scalper1 News
Scalper1 News