Stock Market for Beginners

Before I dive into this article, I would like to let you all know that I just finished my Product Management internship at Google and will be going on vacation to Peru in the following week, so I won’t be posting until I get back.

In last week’s stock market overview, I examined the correlation between the S&P 500, the Volatility Index, and the Put/Call Ratio. These indicators showed that the market was likely to rebound soon, but I indicated at the end of the article that a bottom may not have yet happened.

It seems, now, that we may have found that bottom.

Stock Market For Beginners:

• Notice the hammer with a very long tail and tremendous volume, along with the follow through today
• The low of the hammer coincides with the previous low in March at around the 1360s, which further validates the hammer
• RSI has consistently bounced off the 30 level, which indicates that the market is oversold
• An MACD crossover seems imminent, which is bullish

While the technicals look good, remember that in a volatile market like this, it’s crucial to follow proper risk management techniques.

Share This