Is the hit from Kygo. For those of you who believe that the 400 point upward swing by the Dow Jones, means that the equity markets have stabilised, please think again.
In Malaysia, the situation is actually more chronic, with RM10 billion net outflow in the first ten months of the year, which comes up to RM1 billion a month or RM30 million a day for every single day of the month.
There is a Firestone about to hit us.
Read MarketWatch from the godfather himself :
‘Godfather’ of chart analysis says ‘damage done to the stock market’ is much, much worse’ than anyone is talking about
Acampora tells MarketWatch that the action under way in the stock market reminds him of the 1987 crash
Ralph Acampora is bearish on stocks
Prominent market technician Ralph Acampora says the stock market is in bad shape and it’s worse than many on Wall Street investors appreciate.
A pioneer in the field of chart-based trading, Acampora said the technical damage that has resulted in the Dow Jones Industrial AverageDJIA+1.77% and the S&P 500 index SPX+1.57% erasing all of their gains for 2018, and the Nasdaq Composite Index COMP+1.58%falling into correction territory—usually characterized as a decline of at least 10% from a recent peak—will take months to repair.
“From a technical perspective, the damage that has been done technically to the stock market is much, much worse than people are talking about,” he told MarketWatch in a phone interview on Tuesday.
Acampora cited a break down of so-called FANG stocks—a quartet of technology and internet-related companies that include Facebook Inc. FB+2.91% Amazon.com Inc.AMZN-0.55% Netflix Inc.NFLX+0.34% and Google-parent Alphabet Inc. GOOGL+1.43% —as the clearest sign that the worm has turned on the bull market.
On Monday, those names, which have been significant catalysts for market sentiment and price moves, shed a combined $120 billion in market value. On top of that, Amazon became the most recent of that group to close in bear-market territory, defined as drop of at least 20% from a recent peak.
“I’ve been a bull for a long, long time and like everyone, I was waiting for a correction but this is something different,” said Acampora, who many chartists refer to as the “godfather” of technical analysis.