2. Sentiment rules the market
Stocks fell sharply today as two economic reports fueled investor’s
concerns about the economy.
The general sentiment of the market moves most sectors and even
stocks that show great strength will turn negative or just be slightly
positive.
Sean Seshadri states that it is paramount that investors follow judge
the sentiment of the market as it will affect stock prices and other
markets in general.
The Dow Jones fell 144 points as investors sought refuge in bonds.
3. Sentiment rules the market
The first report at 830am from the Labor Department said
claims for unemployment rose which caused the market to
move lower.
At 10am Philly Federal Reserve said manufacturing activity
fell since August which increased bearish sentiment.
Lux Investments wants intraday traders to be prepared for
economic reports that can move the market.
4. Sentiment rules the market
Tech stocks moved lower including google which went down
14.18 or 2.94 percent.
Investors who shorted google would have benefited from
buying put options which went up over 500%.
The option ranged from 55 cents to 5.00.
With options, Sean Seshadri states that one does not
need a large amount of capital but has to understand the
components that make up an option in order to trade it
correctly.
5. Sentiment rules the market
For more details to know about Sean Seshadri
http://www.luxinvestmentsintl.com/
