Be Wary Of September Swings
As Henry James puts it: “Money is a horrid thing to follow, but a charming thing to meet.” Very true. This is the reason why people are finding ways to earn more without sacrificing much…
One of the lucrative activities to dive into is swing trading online. They always look fine at the top. They always look awful at the bottom. In the realm, purchasing in fear and selling in greed are not a clever idea.
Minyanville Financial Infotainment reports:
Although the S&P off-set the August 24 1479.40 swing high, it did not recapture the more important swing high on August 8 at 1504, which was the high for the month of August. The August 8 high is a critical level because trade over 1504 in this new month of September would turn the monthly swing chart back up. There is a greater than average likelihood that there are substantial stops by the bears in this area. A failure by the bulls to run the stops above 1504 may speak to the level of conviction and power in the bull camp.
American stocks are also predicted to decline next week. This is anchored on the escalating fears of traders. Feds, on the other hand stresses an otherwise light week for data.
MarketWatch reports:
U.S. stocks are expected to extend their declines next week, following a sell-off from Friday after a weak August payrolls report stoked fears that economic growth has stalled in the wake of the subprime- and credit-market turmoil, strategists said.
The government on Friday announced an unexpected drop of 4,000 jobs in U.S. nonfarm payrolls in August, the worst showing in four years. The report surprised investors, undercut optimism about economic growth, and sparked widespread calls for the Federal Reserve to cut interest rates when it meets later this month.
We just have to be wary…
