This isn’t total liquidation, it is asset and sector rotation. The feds meeting minutes were more hawkish than expected, implying a greater chance of a rate hike in March along with a faster balance sheet run off. These factors impact the market multiple that stocks trade at— the multiple is contracting. Some sectors and assets will be okay because they are seeing earnings growth that’s greater than the multiple contraction. But the broad market is just repricing and there’s no reason to think it’ll rally unless 1) growth data comes in better than expected (implying higher earnings) or 2) Fed walks back the faster balance sheet run off. I don’t see #2 happening unless the market falls into correction territory (implying a Fed driven recession).
Something is wrong with this downdraft.
- Thread starter Overnight
- Start date
And there it is. Someone in another thread mentioned this before...
Which market? The Russel is now in correction.
SPX.
You are out of your mind. Yesterday financials and oil and many other staples went up to the tune of 3% when tech and growth was sold. Sector rotation. Today is nothing special. Tesla has not even lost 1/3 of its Santa rally. Intel not even 1/4. Goldman not even 1/5. S&P500 lost 1/2 of the rally that started around Dec 22. Don't be so jittery. We can talk when major support lines are broken in all the major indexes.
Of COURSE I am out of my mind! That you do not know this is proof you are new here!
Major support lines broken? Wheee, let's all snort some Q4 2018!
Welcome to my head. Hope you find it comfortable.
Well you said this "We rarely if ever see a drop this severe in both NAZ and ES." Last I checked the ES was down a whopping 0.36%! Every millionaire and his trillionaire uncle must be selling every share they own!
I'll grant that all asset classes (except maybe oil) have looked bad the last few days, but that's happened many times before. Gold and bonds will probably strengthen if the correction continues.
Huh?
I dunno what charts ye be looking at.
Do you want to know why I know what the fuck I am talking about? It is because I am in the market with real, live money. I am not a sim faker, I am not pulling punches. I am in the shit. So neither you, nor anybody else, can fuck with me.
When you get into the sandpit with me, THEN you can spew. Until then, you can just pipe down.
1) You're way too emotional to be a good trader
2) Those are today's closing prices. You said "tonight." I'm looking at tonight's futures prices and the S&P isn't down anywhere 2% right now.
Who said, don't expect a market correction but definitely a sector correction? Well, some tech companies are down well below 30% since early Nov. 2021 (RNG, NTLA, SEDG, SNOW, LMND, CRM, ZS, OKTA, CRWD,...) I'd call that a correction.
Of course, only investors are showing signs of panic. Traders don't care much one way or another.
Of course, only investors are showing signs of panic. Traders don't care much one way or another.