Stock Pullback Appears As Predicted
Summary
- Dow and other indices were seeing small momentum gains.
- Vix was holding key support.
- Dollar bounce was expected.
I've been warning subscribers to my Marketplace service Global Markets Playbook that there was a chance of markets pulling back and said ahead of the weekend to "Go defensive for a possible end of year correction".
The Dow was moving higher but was unable to gain any real traction ahead of recent resistance levels and investors have fallen for the complacency trade once again.
A vaccine rollout recovery and a U.S. stimulus deal was fully priced-in to frothy markets and the pullback has begun on the current European virus panic.
I've also been warning that a near-term bounce was possible in the dollar as it moved closer to my July prediction of 88.20 in the Dollar Index.
The Vix has held my key support range and was ready to jump into any pullback move with a push higher.
The Global Markets Playbook portfolio is up around 30% on the year and you can sign up for a free 14-day trial here to take advantage of all my short and long-term plays.
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