The first half of 2022 is pretty much in the books. The bear market has sent stocks tumbling. That doesn’t mean it’s time to give up. Nope it’s time to be proactive, by searching the landscape. While nearly all groups were sold hard this year, two sectors are primed for upside.
Bear markets take their toll on everyone. But they eventually end. Capitulation forms bottoms.
Just when sellers seemed to take a vacation, they returned with a vengeance. The first signs of capitulation are here.
Markets move like waves. Money is the current. Follow that flow and you’ll have an edge. Stocks are rising as massive selling slows.
If you want to divide a room, ask a group of investors their forecast on the market in 2022. If you want an unemotional narrative of the stock market, follow data. Today’s message is simple: Stocks bounce from oversold levels.
The bears are out in full force. And I don’t blame them – there’s a lot to be worried about on the economic front. But there’s also reason to be hopeful and bullish. Markets are officially oversold, and valuations are becoming attractive.
We’re in one of the most challenging market environments in years. Stock prices keep falling. Sentiment is awful. Volatility remains amped. But here’s the positive news: The Big Money Index should hit oversold within days.
Fear is high. De-risking is at levels not seen since March 2020. That’s the bad news. The good news is where I’m going to focus today. When selling is this intense, a rare buy signal is approaching.
Stocks keep getting sold. Many companies are in a bear market. As the Big Money Index approaches oversold levels, what does it mean for stocks going forward? I went back in our data to help answer that question.
Investing isn’t easy. And the last year is proof that bull markets can turn bearish fast. The past week of data has a different tone. Today we’ll cover when buyers disappear.