What Happened In The Market Today?

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.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

How Long Do Stock Market Corrections Last?

Hi, friends.  A short post this evening, as we in the U.S. ease into the Thanksgiving holiday…

So…corrections.  What are they?  Are we in the midst of one?  How long do they last?

The definition of a correction is when a stock market average drops by 10% from its high.

Currently the Dow is down around 7%, the S&P 500 is down 8.5%, and the NASDAQ is down 13%.  So yes – we are in what can be termed a correction.

How long can we expect this downturn to last?  It’s impossible to know for sure, but if history is our guide, the typical correction lasts three to four months.  When you consider that the market peaked in late August, we will probably be in sell mode for the rest of the year.

Stay the course.  Buy and hold.  You’ll be glad you did!

I wish all of those celebrating a happy and safe Thanksgiving Day!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *