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Momentum Monday – Nothing But Red and Nowhere to Hide

Author

Howard Lindzon
December 17, 2018

Before I get into it, a quick thanks you to my Momentum Monday sponsor Marketsmith. Great people and great product…

Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.

Thanks everyone…onwards…

The year 2018 so far…

First we lost Crypto

Then Goldman (no complaints);

Then Netflix;

Then Nvidia;

Then Apple;

It seems like the last recognizable stocks standing are Twilio (I am long) and Microsoft. The thing about bear markets though is the sellers come for everything. We are in one of those rare market moments when all the momentum is to the downside.

A panic – I call it a woosh – is in process.

With all that in mind, this week’s episode of Momentum Monday is a walk through the wreckage.

(click here to watch it) and I hope you enjoy:

Despite the no good terrible stock market of 2018, there are still 62 stocks that have at least DOUBLED in 2018 and Ivanhoff points out a few that the sellers may be coming for next.

My favorite explanation of the market meltdown (because it’s just true) is from Eddy who has a way with financial words:

If I had to pin the blame on one factor for the stock market selloff, I would say it’s lower share prices.

So what am I going to do?

I am going to put some cash to work tomorrow, but it will most likely be a trade.

PS —-

The S&P 500 is down 7.8% in December so far.

This would be the worst month of the year, topping October’s 6.9% drop.

Since the S&P 500 started in 1957, December has never been the worst month of the year.

Will Santa save us? Or is 2018 going to break the streak?

And… 2018 has been rather calm:

New YTD low for S&P 500. But think about this.

Max YTD gain this yr was 9.6% (Sept peak) and min YTD loss is today’s -4.8%.

This comes out to a range of 14.4%, versus avg range since 1950 of more than 23%.

2018 is actually one of the smallest ranges for a year ever.

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