Stock Market Crash, Is it over hyped?
Is it time to buy the dip in Stock Market?
At Forex Trust Club, it is our job to predict future price action on the Stock Market. Since the beginning of this year we have predicted nothing but bad news and steady declines for equities and Stock markets.
Check our history of posts and video’s on all social media to verify this for yourself if you don’t believe us. 🙂
We did extremely well shorting European Indexes/Indices all of this year, but have been surprised how much of a divergence there has been between U.S Stock Market prices holding, and gaining whilst other global equity markets declined. I am not talking about a clear inverse correlation between America and Estonia, I am talking about Germany and UK and France all the other major powerhouses of industry in Europe.
For instance DAX has been down 30% from the beginning of the year and the S&P500 and NASDAQ have just continued on upwards all year!
They were up around 15-20% so far this year, stronger job market/labour market unemployment rates etc etc the data coming out of America has been strong all year. As where European Nations economic data has not been overwhelmingly good or bad, however I fully believe all this depression is all purely fundamental. About 205 technical price action.
Well finally it has happened. It appears a perfect storm of factors has hit investor sentiment and the Stock Market has shown definite signs of weakness today.
Geopolitics in decay! Trade Wars! Rising Interest Rates from the Federal Reserve! BTP Bond/Bund spreads(Italy/Germany)! BREXIT! EM(Emerging Markets) Crisis! Strong dollar!
In December we have the end of QE(quantitative easing) and the start of QT(quantitative tightening) from the ECB.
Could be a good EUR/USD or EUR/GBP buy trade…who knows? We do!
We called it! And here it is in all it’s glory..an absolutely, overdue and necessary correction on the Global Stock Market. To BUY or not to BUY?
DOW JONES INDUSTRIAL AVERAGE
And the NASDAQ