US stock market not only is displaying a bear pattern but is also behaving in a manner that is pointing to even deeper technical deteriorating behavior.
Bear market does not go down in a straight line and stays down which is the case now.
Inflation has gone totally out of control and no end is in sight, Food inflation, Gasoline inflation, Natural Gas inflation, Home price inflation, Mortgage Interest rate hike plus consumer lending rate all going UP & UP @ a fast pace....
Most World Central banks are panicking NOW and hinting that they will hike much more than traditional 25 / 50 basis points..75 or 100 is what being hinted....
World & US stock market was not ready for War, Inflation, Higher interest rates not to mention QT which stands for Quantitative Tightening which means liquidity will be drained out of system....
NO WONDER stock market has been down 10 out of 11 weeks, never happened since 1930's.
What to do about all this.....NOT MUCH
We are stuck in a market which is being pressured more and more by unusual events and there is no end in sight....
Traders / Investors have no choice but to suffer in near term
Fed meeting and its statement will be more hawkish ...Q & A will be more of the same....
How much of hawk talk is in the market only close will tell everyday, we seems to be closing @ lows most of the days.
We have no choice but to mark time and go through a very bad patch in the market.
Good luck with your conviction & patience.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -2.19% (YTD: -22.30%)
Notable Leaders: BMEA GTLB PLAY
Notable Laggards: UPST CXM IONQ ZENV SNAP
In a brutal week for the indices with losses >5%, the portfolio poorly somewhat better due to good earnings and price action in three names. I think you are right in that staying the course is really the only way to go here with much of the Fed and economic damage having been priced in already. Picking a bottom is always a tricky game and sometimes you just have to buy when you are comfortable with long term valuation and outlook, realizing the short term could be volatile still. Given that most growth stocks peaked nearly 18 months ago, I feel like the hot money is completely gone, and that represents opportunity in my opinion.
Holdings: SNAP ENPH PATH PLAY GTLB LYFT BMEA UPWK CXM UPST IONQ ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 8.28%
YTD Down 12.34%
Saleem
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