4/6/25 - Escalator up, Elevator down.
Nikkei was down 6% at open (our Sunday night), trading stopped with circuit breakers. Naz futures down 5.15% around 8:30PM Sunday).
Those following IBD with all or a major part of their funds are resting easy as they should be 100% cash.
Webby showed the 1987 crash so we could see the volatility after the big down days…
Look how hard that was to trade. With those huge ranges, you can’t do something like buy as a stock is going above the 50dma with a stop loss below 50dma. You would need 15-20% stop losses to keep from getting immediately stopped out (say with a 5% loss). Unless Trump pulls a rabbit of certainty out of his hat, we should expect to see this.
And Aug 2011, followed by a lot of “chop and slop”
Now, after that second time Naz went above 200dma for good in Jan 2012, then the daily bars get tighter and the next good run started. It took over 4 months to get there. Also, want to see all that gap up and down days stop.
Next they looked the Naz at the beginning of another big down market on 8/21/2015 and then fast forward to 1/7/2016 to see the aftermath. Look at where I have day 3 of the fall circled. Webby points out that people probably thought “it must be over by now” and tried do buy on that, but if they did, they got crushed the next day and probably had to capitulate at the bottom (guesses I).
Definitely worth watching the first 16m of the video.
Nowhere To Hide In Sea Of Red; TJX, DR Horton, Ollie’s In Focus | Stock Market Today
Update 10:51 PM - Hong Kong down 10%.