Financial Markets Observations

Not financial advice (dyor).

Market higher at the open, met by selling. By itself, insignificant.

However, international markets attempted to push US markets higher overnight in an attempt to recover from heavy losses yesterday. Hasn’t worked (dead cat bounce didn’t even bounce). Hmm.

No significant bond buying either. We do not see a rush to “sell stocks and buy safety (bonds).”

This is not a great combination, equities lower without panic. So what happens when panic actually occurs (if it does occur)? Nasdaq is now down 10% from the high.

This is not a difficult market to observe or understand. It is always a difficult market to predict in very short timeframes, day traders get it wrong many, many times a day. For everyday people, this period is about whether or not the degree of volatility fits your specific objectives, opinion, and risk-aversion (do you like the up and down).