The bulls made several stands on Thursday after a total drubbing on Wednesday. And as the all-important 3 pm hour started it looked as if the bulls were going to make some noise and eat into the big losses from the day before. But that wasn’t to be, leaving stocks vulnerable into the weekend. Again, the bears need to immediately progress to new lows across the board with conviction to have a short-term impact. That’s not the most likely scenario. If stocks can hang in on Friday we should see another rally attempt and probably above Tuesday’s high which would gain back all that was lost on Wednesday.
As I wrote on Thursday stock market action look similar to other times when the market was in the bottoming process. There was the initial, sharp snapback followed by a revisiting of those lower price levels before a better rally set up.
Granted, the current pullback is a little deeper than we saw in 2020 and 2018 but then again, the Fed pivoted in those years. 2015 and 2016 are below.
And here is 2011.
2009 did not hold serve.
August 1998
1990 looks more like today.
Even the crash of 1987 has good similarities.
On Thursday we bought ECH, UWM, GDX and levered NDX. We sold levered inverse Russell 2000 and NDX.
Comments
Log in or sign up to join the conversation.