Bad news, guys… It looks like the next stock market sell-off is in July.
As a matter of fact, it’s happening right now.
Monday morning started off with a nasty surprise. There was a major sell-off in Europe, and U.S. stocks fell aggressively with the Dow Jones plummeting more than 800 points — that’s almost the worst decline of 2021 so far. Oil and bonds tumbled as well.
Why?
This is all thanks to the rising concern of the COVID-19 delta variant. Investors fear that rising cases of this will slow the global economic growth we’ve been seeing. It’s also causing them to question the sustainability of this reopening, and the recovery of the economy in the face of another wave of the pandemic.
The stock market is in for a risk-off trading atmosphere this week, to say the least.
In risk-off situations — like we’re in now — investors become more averse to the risk of their positions and will sell them. This, of course, will then cause stock prices to go lower.
However, this isn’t the only driving force behind the next stock market sell-off in July…
Key Factors to Watch for the Next Stock Market Sell-off in July
There’s been a major ratcheting up of negativity caused by the media surrounding the reopening and explosion of the delta variant.
All of this is putting a damper on the summer trading season, which is already extremely volatile as is.
As a result, we’re seeing airlines, hotels, oil and gaming — really any stocks that benefited from the reopening story — taking major hits to the downside.
That’s why today, I want to cover all the warning signs and red flags waving at me that’s indicating the next stock market sell-off in July.
We’re going to look at everything the stock market has done, and some key levels on my macro indicators that’ll give us a detailed road map to navigate through this (and the next) sell-off — without panicking or making any knee-jerk reactions with our trades.
But my game plan for the next stock market selloff in July isn’t the only thing I’ll discuss in today’s video!
Check out my short video below to also get a preview of what earnings will look like this week. I’m particularly interested in how Texas Instruments Inc. (Nasdaq: TXN) and Intel Corp. (Nasdaq: INTC) earnings will look — curious to see if the disruption in chip manufacturing has a material impact on the results.
Also be sure to share your thoughts in the comments section below.
And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
