Mike Simonato, Ontario. Presenter: “Investing for the Long Term”, presented to the Feb. 6, 2021 International Online Forum, you can watch by CLICKING HERE.
Another week in the books and today (Friday, November 26) was certainly an eye-opener. Here is what makes this unusual and scary.
In the States, Thanksgiving saw the market closed Thursday and a short trading day today. Traders usually take Thursday and Friday off and rest before Santa comes for his year-end rally. This year, however, was a lot different. The short trading day Friday saw a huge sell-off (Dow down 1,119, Nasdaq down 322, and S&P down 120, but the biggest loser was the Small Cap Russell 2000 down just under 5%).
Personally, I watch the VIX. It has been down around 20 for quite a while. I never get too concerned until it crosses above 25. Once the VIX gets above 25, it can get ugly fast, Today the VIX jumped 27% to close at 25.9 so if the sell-off continues next week, look for a really scary and ugly week.
They say it is because of the new variant in South Africa. This variant has the potential to make all the billions spent on vaccines of little to no value. The variant is already in Europe and today people flew in from the infected area today to beat the banning of all flights from that region. Many health pros are saying this variant is already in Canada.
Let’s make one thing very clear. Politicians and Pro Traders know things well before us and sell long before us. That is another reason why today’s sell-off is more worrisome.
In Ontario, our COVID numbers soared today to over 900 with a really scary 3% positivity rate.
Secondly, Gas Prices are expected to fall 11 cents per litre overnight. This also is unprecedented.
Summary: this is a time to be very smart and act wisely. Look for a future post for my plan and my ideas on how to play the future.
NOTE: Remember the International Forum Presentation next Saturday, December 4 at 11 am This will be a must-watch with keynote speaker Bob Turnbull presenting an update on his Bull Strategy.
NOTE: There will be stocks added to and removed from the S&P TSX in December. See the attachments for each list.
As always nothing more than my 2 cents and I hope it’s of value and interest
Now for the Markets:
USA BSR 34
DOW JONES: Fell hard today on Avg Vol Could easily fall to the 200 SMA or next support level
NASDAQ: Fell on low vol. Could easily fall to the 79 SMA or lower
S&P 500: Similar to the Nasdaq On a Big correction it could fall to support and the 200 SMA
MKT TIMING: Everything fell hard this week. Could continue down to 200 SMA and Support
READ Views and Strategy
CANADA BSR 34
PTSE: Fell on big vol to the 40 SMA Sell off could continue to the major support and 200 SMA
VENTURE: Fell on big vol to the 200 SMA Could easily fall further
MKT TIMING: Everything fell hard Could easily get a C/DN on Monday
READ Views and Strategy
GOLD: Once again proved to be a heartbreaker. After failing at the 200 SMA it has fallen off
Australia READ Views (May want to Print) and Strategy
Britain READ Views (May want to Print) and Strategy C/DN today
Many thanks for your insights Mike