THE MARKET’s MESSAGE: Market in DOWNTREND (CORRECTION)
The market continues falling: Nasdaq undercuts June2022 low AND September 2020 low.
Remember: Stocks and indexes tend to fall faster than they rise!
You can avoid much of the impact of a Downtrend by simply stepping out of the market into a cash position. If you are confident this downtrend will continue, you can buy an inverse ETF like the PSQ which falls about 1%for every 1% drop in the QQQ. Not only do Downtrends happen fast, but so can a reversal back up. If you are holding an inverse ETF like the PSQ when the market rebounds higher, you will lose money in the falling PSQ until you sell it.
Notice the last 5 days were all red (falling) days. Add to that concern, the fact that 3 of those days had higher volume than the day before (see blue arrow on chart.) Those 3 days were Distribution days indicating institutional selling. See Accumulation/Distribution history below.
GOOD NEWS:The percent of stocks with A or B Accumulation/ Distribution ratings rose from 19% to 26% in just the last 2 weeks! That shift shows a lot of new buying going on –They can’t hide their buying from us! (See next page)
Stay tuned. Protect your portfolio’s value. Do NOT let it crash just because you believe the correction might be over. The only way I confirm the correction is over when a new Uptrend takes off.