Today’s market selloff makes sense as inflation, Covid, Build Back Better issues, and the Fed continue to stress the longs. However, keep in mind that your risk goes down as the market goes down. Meaning, if you’re about to put money to work, it’s less risky to do so on market pullbacks when stocks are cheaper. The discounts are really starting to add up and at some point, funds and retail traders will be forced to nibble.
Despite the increased market volatility and negative price action, a look at today’s big picture looks constructive. It’s only one day, but a nice first step towards putting in a bottom – we shall see.
That SMA100 is offering support again and the candle indicates buyers bought up a lot of the intraday action.
Putting in a bottom? That’s a crazy long term channel. hmm
The Qs are also retesting SMA100, but history says SMA130 has proven to be better support. I’m not convinced QQQ has found the bottom – it’s definitely less impressive than SPY or IWM.
My activity today:
I spent most of my day away from the computer, but did do a little bottom feeding in the following:
Trade ’em Well