Market Update

Hey Traders,
 
The S&P 500 completed its death cross this week with the 50 day moving average moving under the 200 day moving average. Nasdaq and Russell 2000 have already completed this cross pushing the major indices into bear market territory. Just because we haven’t had a 20% correction doesn’t mean the market can’t have bear market action.
 
We are currently 44 trading periods into this correction. The correction earlier this year was 90 trading days, 2010 correction was 101 trading days, 2011 was 134 trading days and 2015-2016 correction lasted 169 trading days. Looking at history can be a guide of what to expect in the future. We could only be half way through this and given the fact that the indices are now in death cross it is important to protect your capital at this stage in the correction.
 
On the bright side Cannabis ETF (MJ) is popping 7% today on news that Altria is taking a 45% stake in Cronos. Why I think this is important is because on August 15th Constellation Brands (STZ) announced a stake in Canopy and the MJ ETF made a 70% parabolic move in just a couple months. This could be a catalyst for Cannabis stocks to make another run and as institutions could start buying them up again thinking beer and tobacco companies are gonna start buying weed stocks.
 
In this webinar I cover the following topics…
 
1. S&P 500 Just had death cross and a look at how you can profit from this signal
2. Dollar is looking tired and this could boost gold 
3. Oil could bounce but oil stocks are still under performing the commodity
4. Good Trade talk news could boost China and Emerging Market stocks quickly
5. We take a deep dive into what industries are outperforming lately
 
Steven Cawiezell
Steven@thetradersplan.com
 

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