Last Friday, a “flash crash” hit Chinese stocks trading on U.S. exchanges. China’s $440 billion equivalent to Amazon.com Inc. (AMZN), Alibaba Group Holding Ltd. (BABA), dropped 7% in just four minutes.
Those stocks tried to recover early in the week, but are now back at the levels hit last Friday.
This quick drop into despair and then modest recovery were caused by the same thing that has led to most of the quick market drops we’ve seen since early 2018: the trade dispute with China.
This time, a leak from the White House had traders running for the hills.
Except the leak, no doubt intentional, wasn’t meant for the markets. As a trader, it’s easy to get so focused on the short- term action of candlestick charts or news headlines that you forget the bigger picture.
So, let’s take a step back. This leak, that was picked up by Bloomberg News last week, has already been walked back by the White House.
It’s just another of the many give-and-take negotiating ploys that we’ll see in the coming months. And we’ll be able to use these market moves to make money.
Happy Saturday to you! While you’re hopefully enjoying a nice, relaxing weekend, I wanted to take just a few minutes (10, to be precise) to bring you a market update.
The biggest headline of the week was certainly the attacks on Saudi Arabian oil production facilities. The brazen attack on a big player in perhaps the world’s most important industry has the markets incredibly concerned, but there’s reason to believe that this week’s attack will be less of a problem than originally thought.
As such, much of the market’s focus has been on earnings reports and technical analysis. In today’s market update video, I’ll show you how the market has now broken out of the box that it had traded in for several weeks and what levels of support and resistance to watch for going forward.
There’s a great chance that we’ll experience a grinding bull market which will experience some pullbacks along the way as we test the all-time highs once again. You’ll want to be aware of when the positive movements are likely to fall, and I’ll show you exactly when I believe that will be – and how the depth of those pullbacks will give us a good indicator of the health of the bull market.
Click here to watch this week’s market update…