Stock Market Panic! - PowerPoint PPT Presentation

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Stock Market Panic!

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The past few days of stock market panic is creating some compelling profit opportunities in the commodity space. – PowerPoint PPT presentation

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Title: Stock Market Panic!


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Commodity Trading Research
Stock Market Panic!
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Welcome to Commodity Trading Research Your
premier site for fundamental and technical
analysis for profitable Commodity Trading. For
more info on Commodity Trading Research visit our
website www.CommodityTradingResearch.com
3
  • Get Your Free Report OnThe 3 BEST Commodity
    Stocks for Trading Success!
  • Well tell you about this
  • Special Offer
  • at the end of the video!

4
  • Hi, My name is Justin and Im with Commodity
    Trading Research, today were reviewing our
    recently published article

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  • Stock Market Panic!

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  • Wow
  • The past few days have been rather intense.

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  • As Im sure youre aware, the Dow Jones
    Industrial Average (DJIA) succumbed to a gut
    churning 530 point sell off last Friday.
    Meanwhile, the SP 500 gave up 64 points as
    investors jettisoned stocks left, right, and
    center.

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  • But Fridays downturn was just an appetizer
    before market bears feasted on Monday

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  • The DJIA plummeted just over 1,000 points on the
    open yesterday, while the SP 500 essentially
    crashed 100 handles lower.
  • What the heck happened?

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  • Market officials will likely deny it, but
    Mondays downturn had all the signs of a flash
    crash- you know, just like the one we saw in
    2010.

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  • Regardless of the cause, the abrupt losses of the
    past few days have the DJIA down over 10 from
    the recent May highs, which officially puts it
    into correction territory.

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  • Not surprisingly, the SP 500 is now off just
    under 10 from its recent highs as well. I get
    the feeling this big bearish move for stocks has
    taken many investors by surprise.

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  • Of course, if you saw this chart from a few weeks
    ago, you knew something big was about to happen
    in stocks.
  • Heresanother look at that same chart

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(No Transcript)
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  • Keep in mind, this is the same chart I presented
    a few weeks ago- only updated with the most
    recent price action and adjusted to a slightly
    longer time frame.
  • As you can see, when I said something big is
    brewing in stocks in early August I wasnt
    kidding around!

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  • Where do stocks go from here?

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  • First of all, youll notice the SP 500 sliced
    through important support at 2,000 like a hot
    knife through butter on Friday.

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  • Making matters worse, this essential index blew
    through 1,970 (another area of strong technical
    support) like childs play on Monday morning.
    Thats bad news if youre a stock bull...

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  • Heres a quick tip

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  • In my decade and a half of real world trading
    experience, one of the most important lessons
    Ive learned is tonever underestimate the damage
    a quickly falling market can do to your portfolio.

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  • If the markets arent acting like you think they
    should, go to cash and reassess the situation.
  • Whats more, dont try picking a bottom in a
    highly volatile, fearful market environment.
  • Stocks can, and many times will, fall much
    farther than you can imagine!

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  • Now, lets get to the good stuff

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  • Whats this stock market panic mean for
    commodities?
  • As I suggested on August 13th, a big downdraft in
    the equity markets would likely exacerbate the
    selling in energy markets.

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  • Believe it or not, the price of West Texas
    Intermediate (WTI) is falling into the upper 30
    a barrel range.
  • As long as this fearful sentiment towards stocks
    sticks around, theres likely more pain ahead for
    the price of crude, as well as the companies
    producing it.

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  • However

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  • Sentiment towards gold has drastically improved
    the past few days. In fact, the yellow metal has
    rallied 70 an ounce since early August.
    However, most of those gains have come in the
    past three trading sessions- just as stocks
    nose-dived.

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  • Remember, gold is typically seen as a flight to
    quality asset in times of equity market panic.
    Given the bearish SP 500 target I mentioned
    above, gold may have another 50 an ounce of
    upside ahead of it.

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  • Bottom line

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  • With stocksin free fall, you may want to look to
    bullish gold ETFs for commodity market gains.
  • On the other hand, youll just have to steer
    clear of crude oil, as it looks poised for a run
    into the mid- 30 a barrel range.

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  • Of course, you could always profit from further
    oil downside with the bearish ETFs mentioned
    here. No matter what youre trading, its
    essential you have a plan.

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  • And most importantly, cut losses quickly if the
    market goes against your position. In wild times
    like these, preservation of capital is your
    number one goal!

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