Markets generally moved sideways yesterday with a downward tilt. But that’s not to say there aren’t winners to be found out there…
AAPL reported blowout earnings and its stock is up about 4% in premarket trading.
NFLX surged nearly 8% yesterday after Bill Ackman announced his hedge fund, Pershing Square, bought 3+ million shares.
So we confirm there are buyers for the right stock. But I’m still looking for more clues of a bottom.
Markets remain oversold. The rubber band is stretched out almost as far as it can go.
The Nasdaq and Russell 2000 both managed to post a lower low while no major index posted a higher high.
The Russell 2000 officially confirmed a bear market and is gapping down this morning.
My reading … the bottom is near but not in.
On average in a mid-term year with a second-year Democrat president, the market declines a maximum of 7%. The market is currently off about ~10%.
But the rally for these years typically comes later in the year.
I’m not ready to make any big bets up or down. I think sideways action is the most likely short-term trend.