Yesterday's market action was neutral.
The market continued heading south. The Nasdaq Composite shed a further 1.2% and volume was heavy across the board due to options expiration.
Russia, global materials and India all outperformed. One glimmer of hope is that in the last few days, there has been more outperformance in these sectors than underperformance - a bullish divergence. Leading stocks behavior was positive.
Nine of the last eleven trading days have been negative, I still expect a relief rally soon. The heavy sell off has resulted in indexes, sectors and stocks technically damaged which means they will need time to mend and heal. Will the market drop more from here?
Even though its already had big falls, it could drop further but my opinion is that the worst is probably over and if we haven't already hit a bottom, we probably will very soon. With me being a long-term investor, I see these setbacks as a temporary inconvenience and part and parcel of the long-term investing game.
Please note past performance should not be used as a guide to future performance, which is not guaranteed. Investing in the Funds should be considered a long-term investment. The value of the investment can go down as well as up and there is no guarantee that you will get back the amount you originally invested.
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