This is my take as well as we both suggested in a previous similar move in markets. Friday's in particular have often been weak for no particular reason. The drop on Thursday seemed pretty natural given news and profit taking. I also don't pretend to know what Monday will bring but with Cdn earnings season coming soon and Cdn stocks still being relatively cheap there may be opportunities here. My overall premise remains a moderately positive US market by end of year with a lot of choppiness getting there. Sector rotation has occurred all year. I believe the Cdn Oil stocks are oversold now due to index related selling and weak hands. However, commodity prices can distort things in either direction short term. Earnings coming up now I believe are a strong bullish opportunity in this area still ( should be great numbers, some dividend increases, some share buyback announcements, some positive news on reduction in hedging losses ). US indexes in general are just a mediocre unpredictable trade in 2022 other then shorting weaker QQQ stocks. If someone is long the right areas, they'll be fine and some trading around the drops even better. I try to buy stocks that even in the worst outcomes will likely be no worse then b/e end of year. There are plenty of those in Canada at the moment.
I bought my puts a day too soon but I held and am still holding. I bought my SPY and DIA puts a day too soon but I held onto them and still have them. Seeing what the market did the two preceeding days; for me it was like a perfect storm was building. China lockdown, Ukraine, supply chain, resurgence of the pandemic and the cherry on top was the Fed speech. I expected a pullback but not as much as we had...glta
I'm glad someone [finally] agrees with me on something. I have a bit different perspective though...I believe a successful trader only needs 3 things. 1) Current and past price data 2) A complete news block on current events, and 3) A reliable neighbor to let you know if a nuclear war has started.
What crash? How about $NDX down -18.16% for the year ... so far. Or bear market territory -20.41% measured from ATH.
3rd swing below the 50sma. That was the signal - it happened on Thursday. I don't know that I'd call it obvious, but the indexes certainly aren't in an uptrend. Anyone going long is trying to catch a knife. "If I am walking along a railroad track and I see a train coming toward me at sixty miles an hour, do I keep on walking on the ties? Friend, I sidestep. And I do not even pat myself on the back for being so wise and prudent." -Jesse Livermore
The amazing statistic is the 7% straight down collapse of the Nasdaq 100 from the open on Thursday morning to the close on Friday. On Thursday it went from +2% to -2% in about 6 hours intraday.