I guess it depends on your timeframe (and instrument), but I'd say we're in a short term correction or a downtrend, depending on your optics. Either way the beauty is people disagree, otherwise who would take the other side of any trade?
It's cause of the way this thing pumps so easily. The ability to always gap up so easily, to always hold of a key support line and just rip. Then you look up and realize that little damage has occurred and the market still remains one good rip away from being right back to ATH. Also the ability for drops to just get eaten up by V-shape recoveries. And finally how often has the market gone from looking like it would actually drop to ripping right back faster than you would believe.
I think the real issue is most investors aren't used to holding fixed income so they are antsy to get back in the market. That is the sentiment that @v-shape-ODTE embodies correctly. The charts say to sell and that is the tug of war currently. Even short term charts like the 30 min or 2 hr charts look weak.
That may be the case, but if it becomes a substantial and continual decline in oil generally the economy follows.
Fed might raise interest and market might go up. The reason -> investors are happy with the resilience of the economy and believe the economy can tolerate sustained high interest rate for a longer than anticipated. Feb might reduce the rate and market might go down. The reason -> Invesrors are afraid that while the rate is reduced, there is a poissibility of a recession..... Conclusion: Market is not linear and more complex and that is why many people lose money.
Yeah we still are. What a pump today. I’m telling you it’s near impossible to bring this market down. It always gets the bounce. You can say goodbye to this fake downtrend.
Your correct. There are reasons though. Its not just Pumping. In the current environment of inflation, companies can gouge consumers drastically on prices, fees, charges. The larger and better positioned companies are...the more they can gouge. This translates into very good earnings. Sometimes amazing earnings. But how long can this last? How long can large corporations drastically gouge consumers? Probably a very longtime because most of the main buyers in the west are old boomers whom have accumulated large life earnings and real estate. Corporations are in the process of harvesting this accumulated wealth. In this situation, corp pass on high interest rates to consumers. However, The Govt is not in such a great position. Govt finances are very very costly. Printing becomes massive. If we see a huge reduction in overall Govt...we could be moving into a sweet spot.