Mood Matters, Cloud Wars and Overshoots

This is 2018 so far for investors…

Right now the mood is very angry and this time around stock prices and market prices are declining.

I am reminded of this great Seinfeld scene…

‘The sea was angry that day my friends…’

I am having a hard time separating the anger from fear in this environment.

I expect continued volatility as fear and anger spread.

If you wish to lower the volatility of your portfolio, stop looking at it so often (via Rick Ferri).

If you think you don’t have a clue about what to do next…say hello to IBM who just paid a 60 percent premium ($34 billion) for Red Hat. I like Glen Soloman’s take best…the cloud wars be real!

Finally…let’s take a look at overshoots.

One of my fave follows on Stocktwits is High Chart Patterns (@HCPG). They had a blog post up this weekend titled ‘Interesting Overshoots‘ (leading stocks that have broken major moving averages but now are sitting on/approaching major horizontal support — basically an overshoot into support).

The charts that caught my eye are the IBD Innovator 50 fund (momentum growth list) and the Russell 2000 Index.

With hundreds of companies reporting earnings this week, including Apple, I expect a wild week.

Like last week, software stocks and the Nasdaq are where I will nibble if the markets continue to plunge.


Also published on Medium.