2/23/22 Correction! Bottoming Action Found

News:

After Russian troops enter Ukraine western allies hit the back with bank sanctions. An international slap on the wrist…

The S&P 500 fell into official correction territory, that’s a 10% decline from its recent peak. This is the first time since the pandemic hit in early 2020.

As things sit right now there is potential for more downside but there are signs the bottom could be in.

Technicals:

QQQ 1-day candles – via Thinkorswim

You can see a clear double bottom forming on the QQQs chart which tracks the Nasdaq 100.

A double bottom is typically a bullish reversal pattern.

The put-to-call ratio is oversold for the 3rd day in a row and the Dow Jones RSI is also oversold.

If war breaks out all bets are off. But right things are looking more stable in the market with several signs of a bottom forming this morning.

Timing:

Mid-term years are for bottom pickers.

If you have a stock that you were interested in but the price was too high, consider buying it now. While there’s always the potential for further downside, we are seeing some of the best prices in a while.

Here are a few of my favorites. All of which I have a position in: VRAR, LTRY, TSLA, BKCC, FFIC, SLDP.

I’m risk off still. Just don’t see a need to take any unnecessary risks.

Watchlist:

*Low Float

*DTSS has support at $2.40
DWAC is on watch
AMLX is on watch
FTK has support at $1.25
CEPU has resistance at $4.30
SFL has resistance at $10

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