Mr Batnick said the reality is that “it’s hard to make money in the stock market. Particularly if you’re a trader or a long-term investor”.
ASX futures pointed to a 64 point or 1.2 per cent drop at the open, as of 4am AEDT. The Australian dollar slid 0.7 per cent to US70.19¢.
The yield on the US 10-year Treasury note was 2.75 per cent, a five basis point slide, extending its one-month retreat to 30 basis points and putting it near 50 basis points from its early November peak.
‘Complex’ markets
As for the Dow’s 1000 point surge, “What we can say with more confidence is that these buying panics tend not to happen in bull markets. Of the 35 +4 per cent days going back to 1970, 31 of them happened when the Dow was below its 200-day moving average.”
At 12.04pm on Thursday in New York, the Dow was trading near 22,534; its 200-moving average was about 25000.
“The highest degree of agreement is that we’re in a volatile and, for those so inclined, highly tradeable but complex market environment,” Allianz chief economic adviser Mohamed El Erian said in a tweet.
In their first day of trading since Christmas Eve, European markets fell. London’s FTSE 100 was down 1.5 per cent, Germany’s DAX slid 2.4 per cent and France’s CAC 40 was 0.6 per cent lower: each pared some of their earlier session losses in line with Wall Street.
As for commodities, at midday New York time, brent crude was 2.9 per cent lower and US oil slid 2.5 per cent, after leaping more than 9 per cent the previous session. Comex traded copper was down 1.3 per cent. Spot gold was up 0.7 per cent. Spot iron ore slipped 0.1 per cent.
In looking at the Dow, all 30 of its components were lower. The best performer: Coca-Cola, down 0.2 per cent. The worst performer: Apple at minus 3.2 per cent. Amazon was 3.5 per cent lower.
Neutral sentiment collapses
“In spite of major declines in the past week, bullish sentiment through the AAII survey of individual investors actually rose for the second week in a row to 31.6 per cent,” Bespoke noted separately. “That is up from the very low 24.9 per cent reading from last week and an even lower 20.9 per cent the prior week.”
However, bearish sentiment jumped too, rising above 50 per cent. “Bearish sentiment has remained at elevated levels for some time now, but the last time investors were this pessimistic was back in April 2013,” Bespoke also noted.
The real shift may be that investors are being pushed by the recent volatility off the sidelines.
“With both Bullish and Bearish sentiment increasing, Neutral sentiment fell significantly. The current reading is down 9.7 per cent from last week to a multi-year low of 18.2 per cent. The last time that neutral sentiment was this low was back in November 2010.”
from Viral up Blog http://bit.ly/2EOjLXm
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