Affected by the Europe open, Dow Jones dropped 150 points on Midday. Look at the S&P500 chart of stocks. A sea of Red across all sectors and stocks.
See this News in Marketwatch:
"NEW YORK (MarketWatch) — U.S. stocks declined sharply Monday as investors worried about political uncertainty in Europe and as Wal-Mart Stores Inc. was hit by a report that it hindered an investigation of bribery allegations."
The thing is I feel these are all Bull****! Pardon me for my impulsive language. I just want to get my message across. What Europe uncertainty?! I could not even see a good piece of news talking about Europe uncertainty. This is the nearest article I get touching on any uncertainty, if there is.
The thing is, Europe has no political uncertainty. Forget about what Left and Right Wing of French Election. The real reason for this month volatile market is that US Economical Reports aren't good in April. It is not Europe or China that cause this fall. It is just that market confidence is delicate this month ever since the terrible Non Farm Payroll report! And market makers or Big Boys in Wallstreet is making use of news, any news which they can, to SCARE the market, as they knew confidence is not high now. This is the GAME of WALLSTREET!
As traders, we need to be sensitive to market psychology and confidence. We need to have methods and ways to track this market confidence. We need an advantage over retailers to know before them the direction of the market! That is why we always make use of our Market Sentiment Indicator to track Market Confidence. It has worked incredibly well.
For this month, our advise remains the same: 1) Cut down on your position if you want to enter. 2) Even if buy a good stock, buy a bad one to hedge, a pair hedging technique.
Btw, I expect this lack of confidence to continue to next week, until next week's big Employment and Enterprise Data. Do not RUSH to enter position, because if next week's reports continue its weakness, it might become a "Sell in May and Go Away" month as mentioned by so many people. But having said that, if QE3 is out, then it is a totally different story!