Sell ASAP? Will 2020 Replay as Fear Index Surges to $65?
The "fear index" VIX surged, with intraday gains nearing 180%!
All three major US stock index futures plunged. Nasdaq futures $E-mini Nasdaq 100 - main 2409(NQmain)$ fell nearly 6%, and S&P 500 futures $E-mini S&P 500 - main 2409(ESmain)$ dropped over 4%.
What triggered Black Monday sale?
Recession Alert:
The U.S. unemployment rate rose to 4.3% in July 2024, the highest since October 2021, exceeding the previous 4.1%.
This triggers the Sahm Rule recession indicator, which predicts recessions when the three-month moving average of unemployment rises by 0.5 percentage points or more above its lowest point in the past 12 months.
The Sahm Rule, created by Federal Reserve economist Claudia Sahm, has accurately predicted all 11 U.S. recessions since 1950.
Additional Factors:
Carry Trade Unwind: Yen interest rate hikes and expected U.S. rate cuts are disrupting carry trades, tightening liquidity in risk assets.
AI Hype Cooldown: Concerns over AI's short-term profitability are rising, with $NVIDIA Corp(NVDA)$’s chip deliveries delayed, exacerbating semiconductor declines.
Middle East Tensions: Fears of regional war are growing, with Iran and Hezbollah vowing retaliation for the killings of Hamas and Hezbollah leaders last week.
Buffet sold $Apple(AAPL)$: Buffet selling $3.8 B worth of BofA the past 12 days and unloading 50% of Apple stock is hard to ignore.
How do you view Black Monday sale?
How’s your liquidity in the portfolio?
Do you have a bottom-fish list?
Will you sell to cut losses?
Leave your comments and also post to win tiger coins~
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buying instead of selling... shopping spree... [Grin] [Grin] [Grin]
that's the norm isn't it, market goes up and down... cycle repeats...
@GoodLife99 @LMSunshine @koolgal @Shyon @Aqa @Universe宇宙 @SPACE ROCKET @HelenJanet @rL @TigerGPT
How do you view Black Monday sale?
How’s your liquidity in the portfolio?
Do you have a bottom-fish list?
Will you sell to cut losses?
Leave your comments and also post to win tiger coins~
这将触发Sahm规则衰退指标
I keep a "bottom-fish" list of undervalued stocks or assets that I believe could recover and perform well in the future. However,I make sure to conduct thorough research to avoid investing in assets that may continue to decline. As for cutting losses, it's a strategy I consider seriously. Selling to cut losses can prevent further declines and free up resources for more promising opportunities. @Tiger_comments @TigerStars @CaptainTiger
The NASDAQ's 12% drop over the past month may seem significant, but is it a true correction? History repeats itself, and I believe this is a buying opportunity. Panic creates market bottoms, and social media amplifies the fear, making it an excellent time to invest in $SPDR S&P 500 ETF Trust(SPY)$ or panic-inducing stocks like $NVIDIA Corp(NVDA)$.
As for technical indicators, I'm keeping an eye on the VIX, which has risen substantially. However, I believe it's essential to look beyond the short-term volatility and focus on the long-term growth potential.
My view is to buy the fear and hold for the long term.