06Jan10:52 amEST

Sloshing Around

Mixed early action virtually across the board is leaving many traders discombobulated as to whether the selling in growth stocks has truly abated. To my eye, there remains a distinct state of denial with respect to the Fed tightening already set in motion. Many simply refuse to accept that The Fed will actually hike rates and reduce their balance sheet, with various excuses such as the variant, slowing growth, or lower stock prices. 

In reality, though, inflation remains sticky. And for The Fed to even get to the point where it currently is functions as evidence that they have already acknowledged just how much of a threat inflation is becoming to society. 

While we are still in a reasonably bullish seasonal period from now through about MLK Day in just over a week from now, the bounce attempts so far in growth stocks remain wholly uninspiring. Still, I am staying selective with my shorts and will seek to become more aggressive if the seasonally bearish period, from end of January through February and possibly March, proves true. 

On the QQQ daily chart, updated below, we can see a tepid morning bounce attempt off the $380-$382 support area. Below there is where I would expect to see actual fireworks, as you will note the VIX is fairly tame at the moment. 

Wanna Talk to The Fed? Call ... Sneaky, in Camouflage

 
BackToTop
 

This website is intended for educational purposes only. | © 2022 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site