Jumped back in to the stockmarket after a long weekend of holidays. It’s a hard job to wait when you are excited and refreshed and ready for action. That’s what I felt last Monday when the market opened. There was a little move up so I thought it was a signal of continuing uptrend in the markets. But after 10 or so minutes that the poor economic data was released, stocks moved down lower. I was in there wanting to go “bargain-hunting”, fortunately, I stopped myself and waited a bit since I saw the volatility was more evident and (moves up 2 points, goes down 3, moves up 5 then down 10) and market seemingly lacked direction. Like that data on manufacturing was unimportant. (The important thing is it is not glaringly Up or Down)
What happened soon after though was a steep fall when the OECD reported the falling GDP projections all over the world. And so the NASDAQ stocks which moved up strongly bled red red red for the whole night. I thought I got in at a bargain with price declined at 1.22 then went to bed only to find that my stock went as far down as 5% before recovering around 4%.
FOMC meeting started yesterday so I was looking at more data points and with other markets specifically EU performing poorly, even risking bleaker economy if not for the gov’t stimulus – the question to always remember asking is “where else could be sweet spot for your money?”
So there I was sitting still watching the opening prices fall another $1,,, when just as soon, the prices started moving up, cent by cent but fast and steady. When it finally recovered back to yesterday’s closing price, I knew there is nowhere else to go but up for that day. I again sat myself down, and watched the price action, just in case the market changes course once again, I am ready with my risk management stops.
FOMC meeting concludes today and looking at data that is neither hot nor cold, I expect no change in the current “sweet spot” of steady interest rates.