Our trading this week at Volatile Mood is informed by the following:
There is a growing desire to move beyond the serious mood of the past week as this week moves forward. However, there may still be some serious news very early in the week as the mood factors from last week (background of violent or volatile news and serious tone) reach their climax.
Market dropped sharply last week, 6.7% from Wednesday through Friday, and then another 4% today (Monday). The good news, is that social mood shows that markets are currently 7% oversold. That is, they are 7% below where social mood would place them as of today. While markets could continue to be volatile or confused as they shift direction early in the week, a large 7% bounce would not be surprising as the desire to move beyond last week’s big losses takes hold.
