In a Volatile Market Pay Attention, Keep Cool, Do Not Overreact

In a Volatile Market Pay Attention, Keep Cool, Do Not Overreact

In a Volatile Market Pay Attention, Keep Cool, Do Not Overreact

$DIA, $SPY, $QQQ, $VXX

  • Stocks rebound sharply off session lows, benchmark S&P 500 broke back above 200-day MA
  • Heavily-weighted financial sector under-performs as yields decline across the curve
  • Investors cautious ahead of Friday’s release of the April NFPs report

Some tips for new investors that may help them sleep at night despite what happens to the DJIA during the day, as follows:

  • Have a plan. New investors should be more concerned about steady growth than the latest “get rich quick” stock to hit the tape. Make sure long and short-range goals are identified.
  • Know your risk tolerance. How much you invest is directly proportional to how much risk you are willing to take. If a low risk type of investor but you have chosen high risk stocks, you will be causing yourself stress.
  • Do not get emotional. Do not let your emotions run/ruin your financial future. If you are only looking at the short term, your emotions about your stocks will be in constant flux and your stress level will be high. New investors should be focused on long-term investments. It is more financially sound, and it will let you sleep at night.
  • Do your homework. Take the time to learn the basics about the stock market and individual securities. Learn the basic stock market terms and what they mean, including financial metrics and definitions. Know the different types of stock market orders and the different type of investment accounts.
  • Advisor: Although anyone can invest in the market if they have money, new investors especially can benefit from a financial advisor as they make their initial stock market investments.

Before taking a trip, it is always advisable to plan well, know the destination and be prepared for detours. The investment world is the.

Preparation will reduce stress and make the journey more enjoyable, Knowledge is Power in the Stock Market.

Remember, it is you money and your responsibility, never over react.

Thursday, the major US bench mark stock market index tested to it 200-Day MA and bounced sharply finishing at: DJIA +5.17 at 23930.15, NAS Comp -12.75 at 7088.15, S&P 500 -5.94 at 2629.73

Volume: Trade on the NYSE came in at 857-M/shares exchanged

  • NAS Comp +2.7% YTD
  • Russell 2000 +0.7% YTD
  • S&P 500 -1.6% YTD
  • DJIA -3.2% YTD

HeffX-LTN’s Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
3 May 2018 QQQ 161.56 Neutral (-0.24) 160.47 162.09
3 May 2018 DIA 239.30 Neutral (-0.17) 238.32 241.88
3 May 2018 SPY 262.97 Neutral (-0.20) 262.66 265.93

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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