With the prior day rally being completely neutralised as the S&P 500 fell to new lows for 2022. The Nasdaq has still managed to escape any breach of YTD lows even with the AAPL downgrade by BoA which saw the stock decline 5% on Thursday’s trading.
We are still standing aside. The trimming of our portfolio at the start of the month and in recent weeks has helped with
The day started with the markets revved up but we have been here before and bought the t-shirt, signs of bullishness soon abated. The day ended mixed with the Nasdaq closing positive and S&P 500 and Dow 30 closing negative. The S&P 500 undercut its June 2022 lows.
Other than three stocks, all others closed positive for the day.
The September slump seems very long and there is no
Another red day but some relative strength in mega-caps did help limit the losses on Monday’s session.
While many stocks may appear oversold, this is more of an accurate hindsight interpretation. Just because an indicator shows as oversold, does not mean the market will abide by that reading and turnaround. So use caution when using overbought/oversold indicators. They offer little to no edge.
The FOMC voted unanimously to increase the target rate by 75 basis points. This was not a surprise for the market although the commentary that followed with the terminal rate estimate brought up to 4.60% from what was originally 3.80%.
Still another week remaining for September and we will look to buy more stocks after that period if the market sets up.
Thursday brought on more choppiness to weakness and has the S&P 500 testing the 3900 zone with the help of weakness from mega-cap stocks. The market did try to rebound early in the session but a bullish momentum was nowhere to be found.
We continue to watch and wait with a little less than half of the September slump remaining now.
After CPI the Dow falls 1200 points to its worst day since June 2020. The rising Treasury yields also piled on pressure for stocks as the mega-caps directed the downside.
The path the Fed will take probably won’t change based on what stocks have been doing but the CPI data has the market worried about how the Fed will handle it. Add to this the Reuters report of possible
Her Majesty Queen Elizabeth II sadly passed away on September 8th 2022 after more than seven decades of public service. It really is a sad time for the country, the Commonwealth and the world. On a personal level and for many of us in the trading community, we will not have ever known a time without the Queen as a fixture of our lives.