18.12.24 - Worst streak in 46 years

Investors are somewhat puzzled by the 9 straight days of losses. While US equities churn near all-time highs, one of the closely watched indexes in the US shows its worst losing streak since 1978. The Dow Jones Industrial Average has fallen for 9 consecutive days.

Markets: US Dow Jones Industrial Average closed lower for 9 straight days while Nasdaq climbs to new record highs.

My view: Nothing to panic yet. The Dow is a stock price-weighted index. The shares of UnitedHealth have been primarily dragging the index down. While notable gainers including the tech members Microsoft, Apple and Amazone were not able to absorb the negative impact.
I do not see this as a buying opportunity. As mentioned before, US tech stocks show an overbought level with the pure optimism. Such kind of news could suddenly change investors’ sentiment and lead to some profit taking.

Become a member to access more valuable market updates like this.