Karpel’s Corner: Global Stocks Impact US Market Uncertainty

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The slide in the global markets has been apparent since September, when $VEU pulled back almost 10 percent. Global stocks are positively correlated with US markets. Either they firm and catch up to the US stocks or we could see an even deeper reversal in US indices.

I still have concern about the Small Caps ($IWM). If the $IWM breaks $107 it would confirm two negative technical signals: A Double Top, and a Head-and-Shoulders Top.

Volatility ($VIX) has us all on edge as well, slicing through $17 and finishing the day at $16.16.

Watch the EU and Asian markets and see how the employment report shakes out. They will set the tone going into this weekend. Keep risk tight, ratchet down size, and manage winners.

See you next time at the Corner!