One of the sources of fuel for a market rally is volatility selling. However, it's the selling that ultimately leads to the last squeeze higher before the fall.
The correlation between Big Tech market leaders and the S&P 500 is getting stronger, not weaker. And that means a correction will be knocking on the door any second now.
Another Fed Day has come and gone… and what a dud. Not only has the S&P 500 fallen off its daily highs, but - big picture - the central bank has completely failed to curb inflation.
We’re seeing some powerful sector rotation just under the surface of the market… There are huge opportunities to profit now in energy, basic materials, the industrials, and consumer staples.
Few things can hit the market as hard as the American consumer’s mood. The impact isn’t always direct or proportional or even immediate, but it touches almost everything.
Triple witching happens just four times in a year, and we can see volume and price go crazy, especially in the last hour (or so) the markets are open, as traders try to get themselves set up.
When Costco beats, equities and consumer spending appear to continue to rise. When they miss, Costco usually falls anywhere from 5% to 20%, and the economy gets wheezy.