Special Bulletin: March 26th, 2018

With one of the biggest single-day point advances ever in the history of the Dow Jones Industrial average, an investor might think the market is back on track. While that may prove to be the case over the next several days, it is not there yet. One hardy day of gains is not enough to repair the significant damage done to the stock market last week. Seasoned market pros know that today’s rally may be the start of something bigger, or just a “dead-cat” bounce. That old Wall Street saying meant that if you were to drop a dead cat, even it would bounce (a little). Hence, with last weeks carnage (a dead cat?), today’s rally may only be a short lived small bounce if the markets are ultimately heading lower.

Investors should wait for more improvement in the internal, technical action of the market before believing conditions have returned to a positive environment. This shortened week of trading may feature some distortions in price & volume as spring breaks & Easter vacation plans will take many investors/traders away early. Additionally, with the end of the first quarter on Friday, portfolio “window dressing” moves may exacerbate an already volatile market environment.

As always, stay tuned, and have a Triumphant day! ®