Wed May 24 2023
The media would have you believe the sell off yesterday and today is because of the debt limit impasse.
But the bear market began Nov 2021-Jan 2022. The counter trend wave 2 is ending now meaning the third wave down is beginning.
Sure once there is a deal,we will probably see a bounce back but that will be short lived.
SPX
Notice the gap down in today's SPX action. This took out the trendline from May 4 and is further confirmation that the counter trend rally is ending.
Equal weight SPX topped back in February. Today's action took it below all four MAs.
We need to start scaling into Hedge, a bear fund that advances as the market decliines
If we do get a bounce back it will probably just return Hedge to this level but I would not add too aggressively here now.
TBF a vbear bond fund has rallied on debt worries and will likely fall back on a resolution. This is another area we need to add.
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