Categories: U.S. Investing

Traders Watching to See if Two-Day Sell-Off is Just the Start

Perpetual Tourist

Traders Watching to See if Two-Day Sell-Off is Just the Start (CNBC)

With two straight decidedly down days for stocks, traders are wary about whether the sell-off could be a minor correction or a “big one.” U.S. stocks have dropped amid a global selling spree, which began after China manufacturing data showed contraction and created fears of a global growth slowdown. Emerging markets also felt the brunt of the pain, with currency weakness from Istanbul to Buenos Aires. Traders expect continued volatility and more selling into next week when the Fed is expected to decide on further curbing its bond buying program. On Friday, the Dow Jones and S&P 500 both broke below their 50-day moving averages. Plus, the VIX, which measures market fear, incurred double-digit percentage gains. A few strategists forecast a correction of 10 percent or more into their outlooks for this year. But the consensus is that the market to end the year higher, even after last year’s 30 percent gain.

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Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.