Traders On Edge As Partial Government Shutdown Begins

Profit from the Pros Traders On Edge As Partial Government Shutdown Begins Stocks finished sharply lower on Friday, and for the week, capping off the worst week for stocks since August 2011. The possibility of a government shutdown turned into a probability as the trading day wore on. And as we know now, the shutdown became a reality at the stroke of midnight on Friday. Traders clearly weren't willing to go into the weekend and the Christmas/Holiday trading week overexposed. So as the market tumbled and people get out, there was very little buying to come in and stem the tide. Who knows how long this budget/border wall stalemate will last. But both sides have dug in and the President said he was prepared for a long shutdown. In Friday's trading, earlier support at 2,467 gave way, and the S&P fell to its next area of support at 2,417 (closing at 2,416.62). Looking ahead, if current support fails, the next level of support comes in at 2,400 and then 2,352. Currently, the market is down -17.83% from its September highs. So we remain in correction territory like we've been in so many times before over the last 9½ years of this bull market. A close at or below 2,352 (actually 2,352.72) would be the -20% threshold and officially make it a bear market. I don't see us getting there since I've never seen a bear market sans a recession. And Q3 GDP just came out at 3.4% with expectations for a full year print at more than 3%. So the economy is growing, which is the exact opposite of a recession. The sell-off due to the budget impasse has been completely overdone. Granted, it's not helping any. But the pullback is really about trade tensions with China and the slowing growth around the world. The U.S. remains the economic envy of the world. But it is a global economy. And it's always better when your trading partners' growth rates are speeding up rather than slowing down. Either way, I believe we are near the bottom. And there are so many great stocks selling at such great bargains. As I've said before, if you wished you would've traded the correction from earlier this year a little better, now is your chance to do so this time. Take note, the markets close early today for Christmas Eve. And, of course, they are closed on Tuesday for Christmas. But regular trading resumes on Wednesday. Have a very Merry Christmas and Happy Holidays. Best, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Zacks' Top 10 Stocks for 2019]( Get a jump on 2019 profits with our most powerful long-term recommendations handpicked for outperformance no matter the direction the market heads. Despite the correction earlier this year and the recent ups and downs, the 2018 Zacks Top 10 Stocks portfolio is handily outperforming the market with an impressive return of +25.5% versus the S&P 500's +1.5%. Be among the first to see the new stocks when they're released on January 2. [Get in Today >>]( Most Popular Articles from Zacks.com [Scoop Up Big Gains With 5 Stocks Having Swelling Cash Flows]( Positive cash flow gives a company the means to meet debt obligations, expenses, reinvestment, endure downturns and return wealth to shareholders. [Read More »]( [Ring in 2019 With These 5 Software Stocks for Great Returns]( Some areas within the technology sector are continuing to shine. The software industry is one of them. [Read More »]( [Why Real Estate ETFs are Beating the S&P 500]( REITs are benefiting from the rotation into defensive areas of the market and a change in rate outlook. [Read More »]( [2 Beaten-Down Alternative Energy Stocks to Rebound in 2019]( We highlight two stocks that look well poised for the upcoming year based on their strong fundamentals and favorable Zacks Rank. [Read More »]( [Which Apparel Stocks Could be the Crocs (CROX) of 2019?]( Lululemon and Columbia Sportswear are two stocks which have the potential to match up to Crocs' bullish run. [Read More »]( Sponsor [Start Every Day Ahead of Wall Street]( Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks' analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge. [Get the latest news >>]( [Bull of the Day: Tesla (TSLA)]( This battleground stock has seen increasing estimates and short covering, expect that trend to continue. [Read More »]( [New Zacks Strong Buys for December 24th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( [Customize Your Profit from the Pros Delivery]( Connect with Us: [Facebook]( [Twitter]( [StockTwits]( Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com](emailto:support@zacks.com) [Get it on Google Play]( [Get it on Google Play]( [Terms]( | [Privacy]( | [Unsubscribe](