If you haven’t already heard, the stock market had a massive rally today.
The Dow was up over 1000 points, which is the biggest one-day gain in history.
The S&P 500: up 4.96%. NASDAQ: up 5.84%.
What was the reason for the move higher?
It was something called an oversold bounce. When stocks go down at a fast rate, as they have over the last three months, they become oversold, and will rally in the way we’ve seen today.
Will this move last? Unfortunately my answer is no, in the short term. I’ve been watching the market since 1995; right now, we are still in a down trend. Rallies like this almost never last, but they are part of the process.
I’m not trying to discourage anyone – far from it! – but I want you to understand that the sell-offs are not over.
Now…if Trump announces that the trade war with China has been settled, all bets are off!
However, expect more selling in the immediate future.
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