Its Over

Originally posted by 1ronnie ↑

My earlier call for a possible end to the US stock market correction may be premature as we are now faced with two new uncertainties. The first is the Syrian crisis - a possible US and alliance retaliation for Syrian chemical attacks with Russia vowing to shoot down any missiles into Syria and an uncontrollable POTUS "get ready Russia" tweet that is equally disturbing. The second is yesterday's FBI raid on Michael Cohen's (Trump's lawyer) and I just saw CNN's interview with Stormy Daniel's lawyer who seem confident that there is possible damning evidence in the investigation that could potentially make this case problematic for Mr Cohen extending to the POTUS himself.
The other uncertainty of a US China trade war although has simmered down is not totally resolved. And in a months time, we have Kim to contend with if he meets with POTUS.

So for me it's toe dipping into the market at this stage as we can expect a subdued market sentiment to linger on. The Dow is climbing a wall of worries and seemed to be rather resilient ; as long as the recent lows are not taken out, it may prevail. But in the end the support can only hold for such number of attempts.

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The subdued and lacklustre trading continued today as expected, as breaking news citing UK subs on the way to Syria amidst a possible Syrian missile strike being seriously considered in the coming day(s). You ask, surely that should be good for Gold and Gold stocks. Well, GOLD (ETF) (ticker GOLD) was up 0.65% today but NST fell back after a promising start [made a modest foray into NST today]. Gold should have been doing better IMO but it is holding and looking good as the days pass.

http://www.marketoracle.co.uk/Article62030.html

Weakness continued especially prominent amongst smallcap techs waiting for validation- new lows were made by IXU (would enterprises be as willing to collaborate on data following the Facebook imbroglio?) @28c, Brainchip (BRN) @15c (-6.25%), YOJ @15c (-6.25%), SAS @11.5c. Another market darling Afterpay (APT) has taken a further 4.5% tumble to $5.35 after Goldman Sachs downgraded the stock for the second time to $6.30. Another multibagger Pushpay (PPH) declined a further 4.3% following yesterday’s post-announcement fall despite a better revenue result. AXP woes continued with a further drop of 11.4% to 15.5c following its two days of sharp drops after announcing its CEO’s resignation.

I actually don’t look forward to 4C quarterly announcements when I am involved with a specky stock because they tend to cause sp to fall subsequently upon release. They only serve to reveal the actual beast i.e the reality that market anticipation is usually ahead of where the company’s progress is at and sp is ahead of its progress. Case example is M7T which dropped 8% after its mediocre quarterly results update today before recovering in late session.

This is my feeling when the next batch of 4C arrives – the resulting decline could take the sp below their major support levels, triggering further selling.

In another news, House Speaker Paul Ryan has expressed that he will not run for re-election and with a likely Democrat resurgence in the looming mid-term elections, it may well open the door for the Democrats to wrest control over Congress. Why is that significant? It increases the odds that POTUS Trump could get impeached and that would be bad for the markets. So it can’t be promising for the markets beyond the 2H 2018.