3 Reasons The Market Topped Last Friday: Urgent

[inthemoneystocks 11]

The stock market continues to sell off for the third day in a row. Just last Friday, the markets opened at a new all-time high. Why is this time different than other pullbacks in the market? Below are the three reasons things are different this time.

 

1. Alibaba Group Holding Ltd (NYSE:BABA) went public with tons of hype. The stock opened around $93.00 and closed right there. All the hype of the 'biggest IPO ever' did little to push more buyers into the market. Please be aware that in 2007, the markets topped on the much hyped IPO The Blackstone Group L.P. (NYSE:BX). This was the Alibaba of its time.

 

2. The Scotland 'No' vote on independence was hailed as a major victory for the currency markets as well as the debt markets. The futures rallied higher as word trickled in that the people of Scotland voted against it. The very next day, the markets saw little to no reaction to the positive side. In fact, the markets opened higher and sold.

 

3. The Federal Reserve remained dovish last week in their commentary. The markets saw a minor pop and have since sold off. The Fed no longer has major buyers willing to commit money to this market at these highs, especially since everyone knows interest rates will be raised by mid next year.

 

The above three events all happened last week and the markets saw almost no upside and have quickly dropped below the recent lows. The market is no longer reacting to good news with significant upside. This is a major change in character to what we have seen weeks and months ago.

 

Gareth Soloway

InTheMoneyStocks

[Guest muhitalam]

I agree with you......