11/03/2022W UPTREND under PRESSURE Market responds to Fed Reserve message with Heavy Distribution day (Wednesday) and more losses Thursday
THE MARKET’s MESSAGE: Market discouraged by Fed’s intention to continue to raise interest rates
IBD HEADLINE 11/3/2022: Jobs Report: Weak October Data May Blunt Fed Chair Powell's Hawkish Talk
Friday's jobs report is already predicted to be softest since December 2020… Yet there's reason to think itmay turn out far weaker — perhaps even bad enough to provoke some rethinking about Fed chief Jerome Powell's rally-killing rate-hike plans.
One result the Fed can create is over-reaching its impact on the economy.
WallStreet Journal 5:30 am: About Friday’sJob Report (8:30 a.m. eastern time): “The figures come in the midst of signs the job market has cooled somewhat compared with the firsthalf of the year but remains strong. The overall economy, which grew at a 2.6% annual rate in the third quarter, is showing evidence of a slowdown.
Conclusion: A cool down of the economy (possible reaction to Fed’s continued interest rate increase) could reverse the current positive outlook
Wall Street is watching the economy’sreaction to the Fed’s Job Report. Many of the reports and reaction to Wednesday’s Fed comments are showing market weakness.
>>>>What can you do with the market getting close to a new 2-year low?
Review your holding daily and know, in a falling market, CASH is a safe position to preserve your portfolio’s value. Yes, there are still stocks that are rising. But remember that in an uncertain Uptrend (such as today’s “Uptrend under Pressure”), stock scan fall faster than they rise.
>>>THIS IS NOT A TIME TO FORGET TO CHECK YOUR PORTFOLIO DAILY!
Wish you, “Many happy returns,”
Charlotte Hudgin, editor, Armchair Investor
The Uptrend shows serious softening - look at the change in market personality over the last 7 days!
Notes: 10/25 hit new high Nasdaq price in these last 20 trading days
WOW! Look at the table below – Note the percentageof "A" and "B" stocks grew from 25% to 4% over just 3weeks!
>>>>>Yet, look at the second chart below and the last 7 days of the 20-day market table above, and see how unhealthy this Uptrend has turned.