The stock market's negative action yesterday marked the eighth time since Nov. 22 in which the Nasdaq fell 1% or more. And in most of those occasions, the index saw volume increase which suggests heavy institutional distribution. Also, many of the former leaders in the growth sector are subject to heavy institutional selling and many of them are in their own bear market cycle, being down 40% or more from their 2021 highs.
All eyes are on the Federal Reserve today (Wednesday) when their new guidance on rates will be disclosed. The Fed funds rate has stood at 0% to 0.25% since the spring of 2020, when the coronavirus grew into a pandemic.
We expect even more market volatility due to this announcement coming up.
With our risk model on RED and the performance of stocks on our watchlist being average at best, we do not yet recommend to get aggressive by any means. It is much better to take only very few small pilot positions or sit and wait 100% in cash until market conditions improve again.
Here is the link for our updated watchlist for momentum swing traders:
www.tradingview.com/...watchlists/67049859/
All eyes are on the Federal Reserve today (Wednesday) when their new guidance on rates will be disclosed. The Fed funds rate has stood at 0% to 0.25% since the spring of 2020, when the coronavirus grew into a pandemic.
We expect even more market volatility due to this announcement coming up.
With our risk model on RED and the performance of stocks on our watchlist being average at best, we do not yet recommend to get aggressive by any means. It is much better to take only very few small pilot positions or sit and wait 100% in cash until market conditions improve again.
Here is the link for our updated watchlist for momentum swing traders:
www.tradingview.com/...watchlists/67049859/
Combing the BEST of two WORLD's: Cathie Wood & Mark Minervini
