Hello! Here’s what’s happening in the market today…
News:
Tuesday was an epic day on Wall Street. Everything fell and there wasn’t a buyer in sight.
Banks are reporting declining profits. And oil prices are at 8-year highs.
But I’m still not seeing the bears I’d expect to see.
Let’s go to the technicals…
Technicals:
The S&P 500, the Nasdaq, and the Russell 2000 all closed below long-term support. Based on this alone I’d expect a correction or even a bear market. So let’s look for confirmation…
The 10-year bond reached it’s highest level since the pandemic hit. This is somewhat expected as the market anticipates rate hikes this year.
Bonds and growth stocks typically have an inverse relationship. But over the past few session TLT, a bond ETF, has fallen with stocks.
My other indicators still aren’t showing the classic warning signs either.
The VIX is holding at a low level.
The put-to-call ration is actually indicating the market is already oversold.
RSI for the Russell 2000 have reached oversold levels while the other indexes are close to reaching oversold.
Generally the market is in a position to bounce…
Most stocks, 64%, are trading below their 200-day moving average.
I’m watching for 70% of stocks to reach the bearish level. That will likely start to signal the bottom of this sell-off. It could take months.
Timing:
As January goes so goes the year….
Mid-term years are known for bearish trends. We may not see a rebound until after the elections. I’m continue to monitor the situation but we may not see good buy opportunities until summer.
I’ve take some action to prepare myself for a long year.
I liquidated my TQQQ position for a small profit. My long terms holds are Bitcoin, LTRY, VRAR, and SLDP. These may take time to play out. I’m willing to go for a ride.
Watchlist:
*Low Float
^Open position
*IMTE is on watch
*IMRN has support at $4
*GMVD has support at $4
MYNZ is on watch
DWAC is on watch
^F has support at $24