US stock market saw back to back UP move in reaction to slumping commodities prices.
Lumber was the lead indicator of lower commodities prices
Lower commodities means lower inflation
Lower inflation means interest rates may not have to keep going higher and higher.
Oil related stocks also joined the bear slump in a hurry where every trader was hiding
SO...just about every sector has seen the bear market across the board
First to slump were travel related stocks, followed by technology stocks...
Technology stocks looks ready to come out of long 12 months slump......
Restart stocks have a very long way to go UP to make up for steepest loss.
Traders / Investors have been hurt badly and may have a long uphill task of recuperating two year of losses...
When there is fundamental reasons like COVID-19, inflation, recession and higher interest rate plus a long war....technicals are of no help....
Even my long followed RSI gave a constant sell and remained in sell zone for most stocks...
It IS going to be a long & drawn out recovery for most portfolio
It is good to stay with conviction & patience as an ongoing mantra....
Bear market comes and eventually goes away thus having a broad based diversified portfolio works whenever we have snap rallies.....
We may have entered a recovery phase in this bear market, which IS a welcome relief....
Good luck with your own strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
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