Here is how the Dow Jones Industrial Average (chart) has closed over the past five trading sessions; Thursday August 4th, down 512.76, Friday August 5th, up 60.93, Monday August 8th, down 634.76, Tuesday August 9th, up 429.92 and today the Dow (chart) finished down a staggering 519.83 points. These are unprecedented market swings and are incredibly difficult for any investor to endure.
This market is panicked, highly emotional and without question going through additional margin call selling. When you are in this type of market environment, probably one of the best things to do is absolutely nothing, especially if your stop loss targets have not been hit. The key indices are still in a very oversold state according to the Relative Strength Index (RSI), however, it is important to remember that stocks or indexes can remain oversold or overbought for extended periods of time. Let’s hope cooler heads prevail and some type of market normalcy can come back over the coming days. Good luck to all.