The market did its best to do what Monday’s action, but failed to regain much of yesterday’s losses. One exception was the NASDAQ benefiting from AAPL move. Fear took a break for much of the session until sellers began to take over. By the close the VIX closed above 18 as the current selling is beginning to look like something a bit more sinister. In our chat room today we were talking about not seeing any past holdings reversing back above where they were sold. Not a good sign for this market in the short-term. This uptrend is on shaky ground and we are prepared for whatever it has in store for us. No need to be a hero.
Ben Bernanke decided it was time he added his two cents to the conversation regarding monetary policy. He stated it was too premature to rule out negative rates. Low rates and now negative rates have done nothing for the country, so let’s just follow their lead. Even better, the European Union is doing the same with rates and they are continuing their QE program. Japan is a large holder of Japanese ETFs and it isn’t out of the question other central banks would do the same. We do live in a fascinating times.
Regardless of what any central bank will do our job remains the same. We must stay disciplined and adhere to our strategy. Stick with the plan.
