Market Report Jan 06 2022

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Market Report for Jan 06 2022

Don't follow the herd

Market Trend:
S&P 500 = Up
Nasdaq Composite = Up

Market YTD:
Dow Jones Industrial Average +0.2% YTD
S&P 500 -1.4% YTD
Russell 2000 -2.3% YTD
Nasdaq Composite -3.5% YTD

Market Volume:
NYSE Vol: 1 bln (Above)
Nasdaq Vol: 5 bln (Below)

New Swing Positions:

We have been positioning ourselves for any form of market sell-off based on earnings and the release of the FOMC minutes. Yesterday we had some selling that saw all the major averages drop on the worst looking day of the new year so far.

The major averages fell ranging from -1.07% ( Dow Jones Industrial Average ) to -3.34% ( Nasdaq Composite ).

All the sectors were bearish with real-estate suffering the most.

We have slowly been trimming our positions since November but yesterday saw the most action in one day since the axe came out. We knew this would happen at some point and has been mentioned in prior posts on TRC but now we are better placed to take advantage of what the market may offer.

We read an article that said the markets have been caught off guard but we fail to see how that could possibly be the case. A rate hike or two looked to be on the cards and the 10 year yield which we discuss each week has been rising. Yesterday it broke above 1.70%, again no major surprise there.

As was mentioned in this week’s webinar, do not let a 10% drop in the markets comes as a surprise to you. Be prepared for market moves and do not end up reacting to market declines. Be current with the market.

We are now coming to an end of our selling, which might be just about the time many others will be starting to sell.

Let’s go trade!