Loading ...What’s Different About The Stock Market?
Notice how the trading action has changed over the last two months and particularly the last two weeks. Since the 2020 bottom, the stock market not only kept going higher but on most down days it would encounter serious dip buying in the afternoon to either finish up or at worse, well off the days lows. Recently, that pattern has been turned on it’s head. The rallies early in the day have been falling apart, leading to down days or at best, weak up days well off their highs. This is a sign of weakness and continuing lower prices.
Sir CM,
Whenever the “dip buyers”, aka retail investors bought a 2-4-6% correction, big money has sold into strength, as new tops were reached on both Nasdaq and S&P.
Big money may not buy again, in size, until Fed announces new money printing.
Gareth Soloway on Twitter has been echoing what you posted.
But not one “analyst” still rules out another 10-15% rally, which may be the last blow off top.
For what it’s worth, Jesse of Jesse’s Cafe Americain has his own blow off top count currently at 8, which tells how many times the bears have been wrong in the last few years.
But blow off top #9 may not occur until the Fed panics. Right now the Fed is playing hawkish.
May be the Fed wants the DXY to have “room to fall”, when the next big QE or whatever is announced.
I just noticed that a big household tech name, Qualcomm, is just a buck above its 52-wk low.
Apple’s news after the market closed today should put more pressure on Nasdaq and S&P tomorrow.
On an unrelated note, what is your latest take on Fremont Gold (FRERF)? It has been languishing for a while now.
Thanks,
GL
That is how you know it isn’t going to happen. If most analysts call for one more blowoff top, it is because they missed the top or want to convince bagholders not to sell. We had the last blowoff top right up to Sept. 1st. Go back to my post last night about how bad this bear market is going to be. It probably won’t start with a crash like 1929 but it is going to be worse than the 1930’s. As far as FRERF, the rocks that have no production and no announcements on drilling results will drift lower until gold breaks out and has a sustained move towards it’s highs. There is no catalyst and there will be lots of tax loss selling up until mid December.