From the Beginning of May 2012 the Dow Jones has fallen from 13300 to the close of today at 12118 which is 1182 point that the Dow Jones has fallen . Today the Dow Jones lost 271.88 points which is 2% loss. We have now wiped out all of the 2012 gains and have closed below the 200 day moving average.
This is what Marketw atch has to say the report, following downbeat data from China and Europe, raised serious concerns about the health of the global economy and sent investors running into Treasurys and gold.
A 10% pullback, which is often termed a technical correction, “doesn’t mean we’re in a bear market. But it does mean you have to recalibrate for a world where the U.S. is going to barely grow 2%, Europe is a chronic source of stress, and emerging markets, at least for now, are not contributing much,” said Russ Koesterich, global chief investment strategist at BlackRock iShares.
With the stock falling so much you will really want to watch how you are trading and make sure that you are reading your charts and if you are buying options you will want to make sure that if you are buying puts you want to get in at a resistance point and then ride the stock back down.
Remember the trend is your friend.
We will see what next week brings as the markets are concerned.
Happy trading!
