How much market correction is expected more ?, when the turn around is expected , is it a right time to buy or Sell – these are the common question an investors having right now. Lets do some quick analysis around it.
How much the market dropped ?
Last one week , the index has lost close to 7 to 10 % , individual large cap stocks are down from 10 to 20%. Mid cap / or Small cap stock are beaten by more than 20%.
Last 2 days was the sell off was very intensified.
How is the technicals looks now ?
The technicals supports are broken like 50 MA or 100 MA or 200 MA.
The market is currently on trend line support from last Feb 2018. If it cannot hold the today market low and it can continues to fall another 5% .
Many of the technicals are broken with high volume. Below are my indicators indicating !
- Daily trend – Sell
- Weekly trend – Sell
- Long term trend – Hold
What are experts view
I called my buddy today , who stock savvy – his exact words are
“ Minor Correction , nothing fundamentally wrong with profits of company “
I concur his statements.
My perspective is – right now the long term trend is very close to breaking, unless some recovery happens tomorrow.
Where we are heading from here
If you have well diversified asset allocation in Dividend stocks , Bonds, REIT, Gold nothing to panic – the portfolio would have done way better than index now.
If you are very long term investor , see this an opportunity and consider this stock selling in discount ( or employee pricing ) .
Apple stock is on sale today 9% discount from MSRP ( i mean it is down 9% from its high )
Microsoft is on sale today 10% off from MSRP
Facebook on sale today 30% off from MSRP
Visa 12% off from MSRP
Master Card 15% off from MSRP
What you think of the current market panic or opportunity ?