Interesting to see how STI is responding to this rare drop on Monday?
CNBC:
The last time the Dow Jones industrial average posted a drop of more than 600 points was June 24, 2016, the day after the Brexit vote.
Before Friday, the Dow has only closed more than 600 points lower eight times in history, with all occurrences taking place in the last 18 years.
To be sure, as the Dow has soared over its nearly 122-year history, point drops increasingly represent a smaller percentage change.
Evelyn Cheng | @chengevelyn
Published 14 Hours Ago Updated 13 Hours Ago
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A case of too many retail entering US stocks in Jan ... short term sentiment indicators shooting thru the roof ... too juicy a setup for institutional traders to not take advantage of ;)
ReplyDeleteThe most important thing for all of us is to have a well thought out plan, & the discipline to invest / trade that plan...
Not productive to speculate where & how markets will go ... except for the fun of it :)
My WAG (wild ass guess) will be a -10% correction in overall stock markets during Feb before going up into the bubble phase later in the year.
IT is quite rare definitely.
ReplyDeleteIn terms o% of the current Peak now is still not in panic zone.
Unlike Black Monday in 1987, The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%).
So relatively, the 660 points dropped now is still not comparable to the 508 points dropped in 1987.
IN 1987 it was a drop of > 22% in a day.
And until today no one is sure why.
Do U?
That's why people like me like the stock Market.
i mean any Ahmad, Ah Cow & Mary can have a go at the Bears & Bulls of the Market - not only for high IQ people only.
Of course high IQ people may have some advantages.
Just like everyone else, they have some disadvantages too.