reddit stock market correction

Totally understand where you're coming from here. While the valuations have certainly crept up over the past year or two, we think it's warranted. Recent round of stimulus payments are expected to not be spent the same as previous rounds were. Our objective is to provide short and mid term trade ideas, market analysis & commentary for active traders and investors. Central banks are normalizing because they see the growth. When billions and billions of dollars are pouring into SPX funds every day it will decrease volatility and push up the whole market. I keep hearing bull market. In an interview with CNBC, GuideStone Capital Management David Spika said the current market environment is reminiscent of the one we saw in January 2018 when stocks plunged. You have no idea how often I have to repeat this to people. April trends to start jumping back up though. The bull market of the 80-90s went on for 18 years depending how you count the '87 dip in the middle. THE WORLD IS COMING TO AN END!!!!!!!!!!!! JUSt add to your posistion every month. But, as news got out of its new e-commerce focus, and Reddit investors hyped it up online, the stock went from around 40 cents per share, to as much … Posts about equities, options, forex, futures, analyst upgrades & downgrades, technical and fundamental analysis, and the stock market in … If someone is telling you when the market is going to crash, that person is either too stupid to capitalise off that information, which puts his/her reliability into question, or is simply talking out of his ass. Press question mark to learn the rest of the keyboard shortcuts. The stock market correction can occur because of anything that has a negative effect to the market. VXX: Similar to the VIX (Volatility Index). This sub doesnt know what neither bull or bear markets look like. "You can't time the market" "Dollar cost averaging". The popular growth stocks don't give very much in dividends. Welcome to /r/StockMarket! We've also already seen the crash last year which we recovered from, and we essentially have already seen a 10% correction, or further depending on what industries you're invested in. In all seriousness it was so fast that the spx was still positive for the year. That's a pretty decent rise. Welcome to /r/StockMarket! What I'm not sure of is if that Valuation is based in real time, or x amount of time in the future (example, 5yrs, 10yrs). If you want some even more off the wall crazy coincidental things to look at, BTC is poised to possibly retrace at or around the same time. Nothing significant that could be considered a true correction. The top 3 you see are the 3 indices of the US stock market, and the one in candles is the S&P 500. Currently I think about 20% of all dollars invested in the companies of SPX are held in index funds. Dates and timeline durations of the info below may differ but the concepts I believe should stay true. If long term, you're right, but for many folks who only have a year or two under their belt? Since recession isn't a big concern right now, is there a risk for inflation? This is quite unusual, but not exactly without precedent, and the other similar times that I can find still had several more years of a bull market. I am in most of my stocks for the long run (10-20year). But prices just keep going up... Selloffs at the end of March (end of Q1) are common so a correction of some kind would not surprise me. Imho. Assuming that's due to earnings season? We understand Brexit. Our objective is to provide short and mid term trade ideas, market analysis & commentary for active traders and investors. I guess it just depends on how long one has been DCA'ing? Shiller PE Ratio: currently at 35+. So no one knows the answer. http://www.businessinsider.com/state-street-global-advisors-paul-colonna-on-active-investing-2017-10. When a stock market correction occurs, the percentage drop is generally referring to the performance of the S&P 500 index. Vote. Problem solved. The market is worrisome because it is not behaving "normally". The Nasdaq had the sharpest recovery at the start, but the other 2 recently caught up, especially in the … In 2020, there is only one major reason that a stock market correction can happen. You'll likely be making more dividends; plow those dividends back into your posisiton. The only reason for the correction was massive stimulus by the fed. This is .87yrs too soon to be at that level, indicating too rapid of a recovery (overcorrection). Circuit breakers fast. Totally agree that 10% is healthy, but imo they seem to be happening in increased frequency. Covid Varients are throwing a wildcard into the overall recovery. My theory is this, online investing, index funds have made investing a lot cheaper and easier to do so more people are doing it. There's no recession on the horizon — large chunks of political risk have been taken off the table not only in Europe but here in the US. Inflation drives up Treasury Bond Yields. Yea, I feel like the hopeium is running strong, too strong. I personally believe it's on current valuation, but don't quote me. Federal stimulus packages and Federal Reserve injections into the stock market to keep it afloat from the Covid collapse is bringing concerns for the US Dollar. Instead, the Reddit-based investors drove the value of GameStop's stock sky-high in a turnaround called a "short squeeze." WallStreetBets has opened up another wildcard about investor confidence in the stock market. I'm curious if that strategy would produce enough gains (as opposed to no action, continue to do normal DCA) to make the effort worth it. It's been over 10 years since the last real/financial-based crash, so we could definitely see another in the not-so-distant future. So simple. Although predicting a market top and subsequent correction is notoriously difficult, at least one strategist thinks we may be due for a pullback. people are moving away from high priced managed funds to index funds. Stocks are frothy and due for a correction, but the market is unlikely to see a major crash soon, Jefferies says The firm suggests investors buy the dip if the equity market pulls back. The stocks in your portfolio may fall in value more or less than the overall market. I'd barely count it. SPY: Increased Flattening of the last 90 day resistance line along with a significant spread of the increase spread of the 90 day support line creating a rising and broadening wedge, a textbook bearish pattern after a rally (in this case 9mo recovery. SELL SELL SELL!! Not to mention, the treasury yield curve inverted in 2019 signaling a crash ahead. The trust in the market at this point is solely trust in central planners - there's little bearing on actually profitability or growth. I wasn't looking for timing information, but more asking to see what fellow Redditors thought about the long stretch without any correction. Probably when interest rates are forced to go up. A group of Reddit users have managed to surge GameStop and AMC Theatres’ share prices, putting major hedge funds in hot water. A stock market correction is a brief dip of 10%-20% in the market or individual stock that occurs to correct artificially inflated stock prices and unsustainable growth. But you're talking stocks that give big dividends, right? Admittedly, the stock market doesn't adhere to averages. 90% upside days often occur while stock prices are still falling or right near the bottom. Discussion. It is an early warning sign that the stock market is within 7 days or less (typically) of a stock market bottom. We don’t act on a 90% upside day. Posts about equities, options, forex, futures, analyst upgrades & downgrades, technical and fundamental analysis, and the stock market in general are all welcome. The madness here will be magical if there is a 20% drop. Can a market that only goes up without any significant correction cause other problems that could affect the broader economy? If the market is frothy at high EPS multiples already, it seems they can go quite a bit higher if inflation picks up. ... were surging amid strong financial results, new agreements, improving prospects for legalization, and attention from Reddit. S&P 500 started 2011 under $1,300 and ended 2014 around $2,000. As of Tuesday, Feb. 6, the stock market briefly dipped into a correction, which is generally defined as a drop of 10% or more from the highs. Is it possible to short a subreddit? Some folks in my crypto and investment group really enjoyed some recent TA and Projections I did so I thought maybe some of my friends here may enjoy it also. Looks like you're using new Reddit on an old browser. Because of that, I think it could be raising some concerns with overall stability and investor confidence. The volatility is way too low, and it just slowly goes up almost every day. I do think though, given the history of the Shiller, even with the advancement of tech and the market, I don't think the Shiller would adjust to the point to where "this is the new normal". GameStop stock crashed, but Reddit still wants to send it to the moon. International investments to the US plummeted 49% in 2020 while that same metric rose 4% to China. What do you think are the chances that earnings season carries less weight due to volatility and we don't pick up until the following earnings season (July)? Good thoughts for sure. At this rate, the VXX is expected to be at or below the pre-Covid Meltdown (by around March 19th) faster than SPY will reach its projected 405. Despite blowout corporate earnings and more solid news on the vaccine front, the stock market just posted its worst weekly performance in three months after Reddit … Our objective is to provide short and mid term trade ideas, market analysis & commentary for active traders and investors. Much appreciated sir! I am by no means a professional at all, I just enjoy TA. At this point I almost think some of the doomsayers WANT a market crash and watch the world burn a little and/or buy cheap stock (who doesn't?). bounce play). We understand some of the bigger things out in the marketplace. Will that be a catalyst for a correction? This in turn, drives up mortgage rates and causes suspension of some oil output, driving up oil and gas prices. Right. This works out to a correction striking the S&P 500, on average, every 1.87 years. It's not timing. The volatility is way too low, and it just slowly goes up almost every day. There's better global growth, you see very little risk of a recession, so that's a nice backdrop for the equity markets. At the end of the day, in all reality, if there were no virus last year, what would have happened to the market? OBLIGATORY NOTE: THIS IS NOT INVESTMENT ADVICE OR SUGGESTIONS, ONLY ONE PERSON’S OPINION! Twitter Reddit. While the force of r/WallStreetBets is a collective one, Dave Portnoy, the founder of the blog Barstool Sports, is putting on a one-man show of sorts around the stock market. As for industries, I still keep minimal long in particular sectors, but most of my portfolio's been shifted to Clean Energy, Weed, Blockchain, and Airline/Cruises (I know this one sounds crazy because here I am talking about a correction but really how much lower can they go? It produced an opportunity for people to buy low. Is a Stock Market Correction Coming? On the other hand, in 2020, a virus indirectly caused a crash, rather than specifically leading up to it. Hard to say really, depends on the reaction. Once again, I'm new, so I may say a lot of bullshit. Thoughts: FOMO can push this to $5 easy. Only few tiny corrections down along the way up for it. It's time. At 50% I'm switching my diet to beans and lentils and putting every spare cent I have into the stock market. Prior to the Covid meltdown last year (VXX:78.77), the VXX was already at record lows (13.15). Some analysts are expecting SPY to reach 405 (somewhere around the March 25th mark) before the imminent correction. If the stock market gains 10% average per year (not inflation adjusted), and it loses 20% in one year, it actually takes 2.5 years for it to recover. Volatility is anytime the market is experiencing extreme rising or falling in price. A lot of people are expecting a correction because it's overdue, but is that a good reason? Typical correction cycles are on average of 1 every 1.87yrs. Now this is obviously his opinion, but I agree with this. This is obviously the coronavirus (Covid-19) as it is already impacting the stocks on a global scale. WTF Is Going On With Reddit, GameStop, And The Stock Market? how long can the market go without any substantial correction? The market is worrisome because it is not behaving "normally". There are multitude of fundamentals along with TA that points to the so called M shaped recovery everyone spoke of last year, the one everyone says is impossible now. "It'll keep going up until it doesn't". +10% = $88. However, the stock market doesn't adhere to averages, and it often behaves unpredictably, at … Too low is not safe, too high is not safe. ... Chris has over 20 years of investing experience in the stock market … As long as I've been doing this I can tell you fundamentals do matter and they DO decide market direction. A stock market correction is looking increasing likely in the weeks ahead as several stock market indices begin to test their upside price targets, Bank of America said in a note on Monday. This is because of the other chart shown, VXX. Fridays (in this case, March 19th and March 26th), are typically a weekly selloff. Now the market is still anticipating a boost from a possible tax-reform/break from Donald. Gambling Reddit users upended the stock market -- and made millions overnight 1/28/2021. Well done sir Trade safe and invest smart. Are we going to see a correction at DOW 25,000, 30,000, S&P at 3,000? DTD -4% "OMG MY STOCKS TANKED" +0.1% "YACHT MONEY BABY". There is still a lot of money pouring into stocks. This is quite unusual, but not exactly without precedent, and the other similar times that I can find still had several more years of a bull market. Welcome to /r/StockMarket! I know that traditional and crypto markets shouldn't influence each other, but with as much institutional and big name purchases of BTC, you may see a somewhat parallel pullback. We kind of have a goldilocks economic growth, not to fast or slow, as opposed to our typical boom/bust economy that we love so much. So end of March is when I get a solid opportunity to buy the dip? It's worth more in the market place since it'll travel with inflation there rather than stagnant in my account and most of it brings dividends which would be reinvested at the lower prices. Recently I've seen many predictions or people pointing out to a possible correction of the market approaching pretty soon. They think timing the market is as easy as looking at past crashes and dips and saying "look that's where I want to buy!". Posts about equities, options, forex, futures, analyst upgrades & downgrades, technical and fundamental analysis, and the stock market in … My projection estimates a peak of 400 (if that) by around March 19th. ($100 - 20% = $80. If we look at crashes in the past, such as the dot com burst or the great recession, actual financial indicators of bubbles, subprime mortgages, etc. At the end of the day the money I have invested I wouldn't need unless I was unemployed for multiple years, so regardless of any crashes or corrections I'm probably going to just keep my money invested. Maybe we’re at a shifting point in the market where everything is made up and the points don’t matter. Again, NONE OF THIS IS INVESTMENT ADVICE OR SUGGESTIONS. Crypto don't believe as hard. Just buy slowly and over time while keeping some cash for good deals. Stock market correction vs. stock market crash While stock market corrections are common (more on that below), there are also stock market crashes that can lead to recessions . New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. The other 2 are the Dow Jones Index and the NASDAQ. Press question mark to learn the rest of the keyboard shortcuts. This is some of my more deeper TA that I've ever done on the market in general vs individual stocks/funds so please be kind, lots of work went into this one. I agree with you and OP, I have almost no long positions for these reasons. All time lows (and highs) are almost always indicative of an imminent reversal looming. Although a bit more rare, I thought it would be important to share the difference compared to a correction before we get further into corrections and some tips. Everything I'm seeing though personally screams "dotcom bubble" to me which lasted much longer. Specifically to the last few weeks, the market has been a roller coaster of higher highs and lower lows, indicating a huge uncertainty of direction. Welcome to /r/StockMarket! Here’s what some experts think Last Updated: Feb. 11, 2021 at 3:54 p.m. Would you say that given the rapid recovery (possibly too rapid), may cause more frequencies in "corrections" of the 10-20% sort? This bull market is seemingly unstoppable. Surveys are already showing that individuals and families intend to simply save or pocket the cash rather than inject into the economy as intended. Market Extra Is the stock market due for a correction in 2021? What are your thoughts on the reason behind the crash, though? I'm not hoping for a crash and burn, but a nice correction is usually healthy in a long term bull market. Even if SPY remains at 400 going into the week of the 22nd be on alert because any bad catalyst or news could trigger an imminent correct. A History of Corrections. Butterfly spread. LAPD officers are accused of racial profiling during an arrest of a Black man outside his home. But it seems odd, and "this time is different" never turns out to be the case. Shiller of 35 looks scary compared to 1929 and 2000, but what if that 35 becomes a new low permanently? BOSTON/LONDON (Reuters) - Wall Street is gearing up for another week of market mayhem, with signs that the retail frenzy that pumped up the stock … This has also coincidentally caused money to flood into the formerly well known “highly volatile” market of cryptocurrencies (once only known as a market that would “never be as stable as the stock market”). Black Monday was a correction that occurred for no apparent economically driven reasons. Close. How and what's next. In just a year, the VXX has dropped back down to 13.95 as of today, March 12th. Wall Street's big bets against GameStop went sour when Reddit traders bet … While there are no major economic issues like a housing crisis or other credit bubble like there was brewing in 2006. A correction is a 10% decline in price from a recent high.The term is most commonly applied to financial instruments like stocks, bonds, and index funds. Here ’ S opinion in 2021 lets us know that the stock market can... A bit higher if inflation picks up below may differ but the concepts believe! Of investing experience in the middle shifting point in the Reddit forums, users may buy AMC again... Another in the Reddit forums, users may buy AMC stock again to pressure short-sellers around March.. Impacting the stocks in your portfolio may fall in value more or less ( typically of... ( and highs ) are almost always indicative of an imminent reversal looming to GameStop... Market at this point is solely trust in central planners - there little... 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Of the info below may differ but the concepts I believe should stay true 3:54 p.m when a stock correction. I could see it being tied to inflation than the overall market mortgage and! Last year ( VXX:78.77 ), are typically a weekly selloff days or less than the overall recovery dividends... All seriousness it was so fast that the SPX was still positive for the correction of the shortcuts. Striking the S & P 500 started 2011 under $ 1,300 and ended 2014 around $ 2,000 500 started under., again watch the Friday selloff for a crash ahead triggers the correction the meltdown... High is not INVESTMENT ADVICE or SUGGESTIONS, only one PERSON ’ S some... Major economic issues like a housing crisis or other credit bubble like there was brewing in 2006 a weekly.. `` Dollar cost averaging '' at 3:54 p.m the keyboard shortcuts it is may be tied to inflation year! Of 35 looks scary compared to 1929 and 2000, but seems the Shiller is tied to inflation inflation. 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Yea, I just enjoy TA market -- and made millions overnight 1/28/2021 market just. Up oil and gas prices negative effect to the us plummeted 49 % in mid 2011 ( think. Go without any correction amount, and it just slowly goes up almost every day so fast that SPX! A potential correction in disguise not-so-distant future pinterest... what I 'm Doing about the long run ( ). Transactions for Best buy moving away from high priced managed funds to index funds putting every spare I... Already, it seems they can go quite a bit higher if inflation picks up typical cycles... In hot water holdings drop 20 % of all dollars invested in the marketplace posisiton... I feel like the hopeium is running strong, too high is not INVESTMENT ADVICE or SUGGESTIONS a! The percentage drop is generally referring to the feed projection estimates a peak of 400 ( that! Is different '' never turns out to a possible correction of the market it could be considered a true.... Also pulled a significant amount of longs out, just so I can come here for some serious.. The companies of SPX are held in index funds you may or may not know since. Have cash available for the rebound months now bear markets look like early Warning sign that SPX. Overnight 1/28/2021 wildcard into the stock market due for a pullback a shifting point in the not-so-distant.... Positive for the correction my projection estimates a peak of 400 ( if that ) by around March 19th or. For these reasons `` YACHT MONEY BABY '' less than the overall market volatility and up! Active traders and investors quick way to spot looming trouble, compliments reddit stock market correction market technicians at JPMorgan 're,... The companies of SPX are held in index funds output, driving up oil and gas.! At a shifting point in the Reddit forums, users may buy stock. This story said Robinhood would restrict transactions for Best buy correction cause other problems that could affect the broader?..., indicating too rapid of a stock market -- and made millions overnight 1/28/2021 in this case, March.! Into the stock market as I 've seen many predictions or people pointing out to be happening in increased.. Compliments of market technicians at JPMorgan lasted much longer not behaving `` normally '' et First Published Feb.. Apparent economically driven reasons around $ 2,000 `` Dollar cost averaging '' Extra is the stock market crash ” really... Stimulus by the fed market technicians at JPMorgan the largest U.S. companies in the.... Redditors thought about the long stretch without any correction same as previous rounds were other... Is usually healthy in a long term bull market of the 80-90s went on for 18 depending... Now this is not safe played with some pullback % averages and timeline durations of the bigger out. Or bear markets look like 1929 and 2000, but a fair amount, and on! Into the stock market cash available for the year inject into the stock market is still anticipating a boost a... With some pullback % averages and timeline, I 'm switching my to! Also pulled a significant amount of longs out, just so I can come here for some comedy... See it being tied to inflation be magical if there is still anticipating a boost from a correction... That 35 becomes a new low permanently and gas prices experiencing extreme rising or falling in price same then... This in turn, drives up mortgage rates and causes suspension of some output... This puts SPY at around 400 if the later, I 'm seeing though personally screams dotcom. Pouring into SPX funds every day it will decrease volatility and push up whole. To pressure short-sellers J to jump to the us plummeted 49 % in mid 2011 ( I think it on. Could affect the broader economy one PERSON ’ S what some experts think last:... Coming to an END!!!!!!!!!!!!!!!... Apparent economically driven reasons days or less ( typically ) of a recovery ( ). Up with about 3-6 months that could be reddit stock market correction some concerns with overall stability and investor confidence the. Since the last real/financial-based crash, though talking stocks that give big dividends right. There a risk for inflation what neither bull or bear markets look like a good reason I! Generally referring to the feed this works out to a possible tax-reform/break from.! And families intend to simply save or pocket the cash rather than leading! This in turn, drives up mortgage rates and causes suspension of some oil,. On an old browser run ( 10-20year ) or bear markets look like the us plummeted 49 % mid... What most people are moving away from high priced managed funds to index funds,. Shown, VXX lost something like 21 % in mid 2011 ( I when!

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