Well here's how to stuff up the weekend! Just when things are...

Well here's how to stuff up the weekend!

Just when things are looking up with VRC, the Golden Cross, buyer strength, the collection tins rattling to raise the bond money etc. We get this headline in the papers!

"In the US, Wall Street had an absolutely shocker as the Dow Jones experienced its biggest one-day drop since the global financial crisis!"
Down 665 points! Just what we didn't want to hear!

Is that downtrend going to continue?

Keep vigilant, because if all hell breaks loose then panic selling will set in! But .. if these drops are just corrections that the Dow Jones needed, then some buying opportunities might become available?

The US had better job figures than expected and interest rates are on the rise. Who knows what the markets are going to do, but most investors and share brokers are watching very closely!

So, the ASX might open lower on Monday? VRC shares may drop in price as well? What we don't want is a full on collapse in the share markets like happened in 2007/8!!!

This is from January 29th, before this drop occurred:
"The RSI or Relative Strength Index, a technical indicator used by chartists to measure the speed and change of price movements, is at record highs.

In the technical world the RSI goes from zero to 100 and if a stock has an RSI below 30 it is described as "oversold", and if the RSI is over 70, it is described as "overbought".

While individual stocks are quite volatile and can regularly appear as oversold and overbought, an index like the S&P 500 index, which represents the average of 500 stock prices, is, by definition, not volatile and rarely becomes either oversold or overbought.

At the moment the RSI for the S&P 500 index is trading at 87.9. The Dow Jones RSI is currently 90.5. That means they are both overbought, which is rare enough, but more significantly, I can't see that they have ever seen an RSI number this high, even in the tech boom, ahead of the 1987 crash, or before the global financial crisis.

On top of that, the S&P 500 price earnings ratio is now at 24.87x; that is the highest since the tech boom and higher than pre-GFC."

http://www.smh.com.au/money/investi...-risk-of-a-crash-is-high-20180129-h0pumd.html