Stock market FLASH CRASH and Market Update



I have been thinking to write about current stock market phenomena for past few days. Today, finally I got a chance to update my investment group members and update it on my Blog. As we know market has been on a roller coaster volatility for past couple of weeks stating Monday, August 24, when DOW Jones plummeted unbelievably about 1089.4 points in the first few minutes of the market opening. Those who watched the stock market at that time could have experienced the earth falling…Ultimately, the market recovered and DOW closed t -588.40 points, closing of 15,871.28 points. However, past couple of weeks have been extremely volatile for the stock market. The market has been in a correcting mode. DOW Jones has come down about 2200 points since it peaked its top 18,312 set on May 19, 2015. What do we expect going forward? The stock market tends to be volatile due to low volume around this time of the year. But do we expect to see some respite in the market volatility? We could, but I am not very optimistic. Next couple of weeks could be very volatile. Once the money managers comes from holiday we could see further profit taking and increasing their cash position to take advantage of further market correction. This could result further down-turn and retest of the low that was set on August 24. Obviously, I am not a fortune teller but that's my thought. This volatility could continue till Sept.16-17 when FED meets to decide whether to raise interest rate or not! Frankly speaking, I do not think FED will raise interest rate till DEC or even early 2016. And if that happens, the stock market could see some bounce before the next earnings season. As I wrote in my last blog, I have been trimming some of my positions in Stock, ETF, Mutual Funds for past few weeks and raising some cash positions to cash in further opportunity that the market may bring. I will elaborate more later on. Please stay tuned for my SEPTEMBER blog for further updates, hopefully next weekend.

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