What To Do If The Market Falls?
This recent pullback has everyone on edge, especially as stories come out of someone making a $1.6 billion bet that the stock market will still crash by the end of the year. While the Fed is in Jackson Hole, Wyoming this week, the economic reports have been scarce, so that allows us to discuss what will stabilize the markets this week and revisit some hedging strategies.
Is A Reversal Imminent?
It was another tumultuous week of trading, with earnings winding down and global economic indicators pushing bond yields higher.
Higher bond yields and rising energy prices continued to put pressure on stocks and the market sold off again for most of the week.
Market sentiment continues to be down, but there could be some relief in sight.
I’ll explain why the market might be flashing an oversold signal right now, even if it’s just for a few days.
More Put Ladder Results!
With all major support lines breached, 50-day moving averages failing, and no positive economic news on the horizon, the market continues to sink lower.
When this happened in February of this year, the S&P 500 saw a 9% dip over six weeks (from peak to trough).
If this is another pullback like that, you still have time to hedge your portfolio against a potential 5% further slide.
That makes it a good time to review what John Hutchinson wrote about a few weeks ago with his laddered bear put diagonal spreads.
Stocks Retreat – When Will It End?
Selling has been plaguing the markets for the last few weeks with no end in sight.
How did we get here after experiencing a double-digit rally over the course of four months?
And when will the selling stop and the buying resume?
There are two tickers that need to improve before we see a change in behavior.
How To Graphically See Sector Rotation
By now we’ve heard that the market rally of 2023 was fueled by a handful of tech stocks, but now after a series of tame forecasts from industry giants, we are seeing a rotation out of tech stocks into other sectors.
But, what does that mean exactly? How are we seeing the rotation?
There are a number of ways, but today’s article is all about Relative Rotation Graphs.
Stocks Head For Critical Stress Test
On average, two to four times a year, the S&P 500 typically makes a pullback of around 5%.
While we never know what the right side of the chart may bring, knowing that a 5% pullback happens roughly every three to four months can help us put this recent drawdown into perspective.
And when you look at the chart, you’re going to see why we are at an important inflection point that is setting up for a potential big move in the months ahead.
What The Fed Will Do Next
Last week we saw a whipsawed week with investors initially responding positively to the latest round of inflationary data, putting the probability of the Fed pausing another rate cut over 80%.
But last week was full of intraday rallies on down days and intraday meltdowns on up days.
We all know the market needs a pullback before going higher, but as earnings season winds down, we’re left to look ahead to what the Fed will do next.
I’m not convinced the Fed will sit on its hands, and I’ll tell you why…
This Commodity Pinpoints Market Pivots
August 11th, 2023 This Commodity Pinpoints Market Pivots The market is full of that bear market energy, but the hard part is knowing if this is a pullback or if this is the start of something more sinister. What if I told you there is one commodity’s key level that can help predict when the […]
This Commodity Pinpoints Market Pivots
The market is full of that bear market energy, but the hard part is knowing if this is a pullback or if this is the start of something more sinister.
What if I told you there is one commodity’s key level that can help predict when the market is going to turn around?
This key level was breached, just a few days before the market high. What is it telling us now?
Mind-Blowing Industry Growth
August 10th, 2023 Mind-Blowing Industry Growth Do you know the one industry that increased 75% year-over-year in 2022 (and I’m not talking about AI)? While this industry isn’t new, it’s becoming easier to saturate the market due to technological advancements and now states around the country all want a piece of the action. But this […]
