Friday was definitely considered a big news day with the result of the UK elections and Nasdaq/Tech drama. The UK election did indeed spring a surprise, with Conservatives holding on, but it turned out to be only by a whisker, and Sterling plunged as a result.
The Proper Way of Handling Stocks After the UK Elections by Guy Cohen
The only certainty in the UK right now is that there will be more uncertainty in the short term, but that will also lead to opportunities … it always does.
And what about the Nasdaq and Tech stocks? This was not an overnight gap down, but a concerted surgical profit taking move that took the market by surprise. In such a case largely profitable positions would have been exited, which is fine. The markets don’t provide guarantees, and Guy Cohen always prefers adverse behaviour to occur during trading hours rather than overnight gapping.
The banking stocks were among the beneficiaries of the tech slump, with BAC, GS and JPM all defying their head and shoulders setups for now.
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