There are no guarantees in the market, but one rule that generally plays out is that once everyone is short, the market has nothing left to do but rally. There are a few ways of gauging that, but today’s reading in the put/call ratio is one of my favorites to consider.
Bears have been having their way with this market for most of 2022 and it’s easy to get stuck in that mindset. I don’t think the lows for the year are in, but I do think we could be working on a bigger retracement. Let’s look at the levels and signals that could drive the next leg for the indices.
In this video, we look at the crazy price action we have been having and try to make heads or tails out of it. Today, we had Powell testifying before congress and Biden speaking as well and the markets continued the chop fest. What is driving us lower and when do we see any change in the bearish tone?
Up one day and down the next, so clearly anything can happen. For this reason I prefer to have a roadmap/plan and that’s what I plan to outline in tonight’s market update.
Take a look at how Joe handled the ups and downs of today’s big swinging market, taking advantage of moves in both directions.
In this video, we look at the crazy price action we have been having and try to make heads or tails out of it. Today, we had Powell testifying before congress and Biden speaking as well and the markets continued the chop fest. What is driving us lower and when do we see any change in the bearish tone? Are we going into a recession and what am I looking for next?
It is not that we have the trends of the past few years, or the follow-through of the buy everything market, or even uptrends… this is a different market, and it requires an approach that acknowledges the challenges of chop and rate hikes. Here is a textbook example of what to look for and how time and volatility are your friends.
