The market on Thursday confirmed the point I made at the end of my Wednesday report. That afternoon, I wrote that in this market the highly dynamic geo-political and geo-economic news flow swirling around out there makes for sudden changes of direction. Thus, for swing traders anyway, being heavily long or short overnight has its risks in the potential for the market to gap sharply one way or another, depending on the news of the moment.
On Wednesday evening, news that a small delegation of lower-level trade officials from China would make their way to Washington for a sit-down session with U.S. trade officials sent the futures rocketing. This led to a sharp gap-up open that saw the Dow Jones Industrials Index gain over 400 points before settling down to a gain of 396.32 points, or 1.58%.
That far and away led all other indexes, especially the NASDAQ 100 Index which gave up most of its gains on the day, closing up a relatively meager 0.27%. The NASDAQ Composite Index did a bit better, up 0.42%. The action gave the two indexes the look of churning and stalling action on lighter volume as buyers failed to express any real enthusiasm.
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