2/6/2018 10:06 AM
Below is a 1 minute chart of the Dow Jones Industrial Average. My thoughts and guesses:
Yesterday’s low was 23,900, but only lasted about 1 minute at this level
The index was off more than 1,500 points at that level, but traders bought in at that point
In my humble opinion:
23,900 is support for the market (red horizontal line)
Novice traders will be stunned
Advanced traders will be buying here
Think of this as an 8% off sale
Expect lots of volatility on Tuesday and perhaps the days that follow
I would not be surprised to see the market trade sideways for some time
Obviously, I can be totally wrong here and the market continues lower and goes below 23,900.
If you are concerned and want to play it safe, call us.
Please do not make panic moves
Move no more than 20% at one time. E.g., if you are 70% stocks now, move to 50% stocks in one day, you can always call the next day and move another 20%.
Please do not panic sell all stocks at one time, we have found that panic moves hardly ever work out