U.S. stock futures traded higher Wednesday morning as investors braced for what ended up being a greater interest rate hike than the market thought a few days earlier.
The put/call ratio — at 1.13 — is still at escalated levels, which means more traders are buying puts than calls.
But on the other hand, the XLY, which tracks consumer discretionary stocks in the S&P 500, hasn’t broken its lowest low. This is a positive sign that the market bottom is near because one of the weakest sectors has held up.
So if you think the market is going to drop another 15% to 20%, you’ve got another thing coming…
While several sectors have been in bear market territory for months, Monday’s 3.8% drop in the S&P 500 made it official.
Monday’s rash of selling was spurred on by a quickly unraveling situation in crypto. Plunging markets have spoiled the appetite for risky, volatile assets like tech stocks and crypto…
The sell-off is so deep at this point it’s threatening the livelihood of the companies and investors that went all in.
Crypto lender Celsius Network was forced to freeze withdrawals as margin calls forced clients to liquidate their assets.
And trading platform Coinbase is set to lay off 18% of its staff to free up capital through the downturn it’s calling a “crypto winter.”
It’s impossible to tell just how deep this plunge will take the market…
But that doesn’t mean there aren’t signs that traders can use to spot a market bottom…
The Russell 2000 index is an index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which is made up of 3,000 of the largest U.S. stocks. It is a market-cap weighted index. Many investors compare small-cap mutual fund performance with the Russell 2000 index because it reflects the return opportunity presented by the entire sub-section of that market rather than opportunities offered by narrower indices, which may contain biases or more stock-specific risk that distort a fund manager’s performance.
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We just got the largest year-over-year increase in inflation we’ve seen in over 40 years, despite being told last year inflation has peaked! And Jeff Zananiri has some words.
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