Happy Holidays to All !

Update

2022 has been a challenging year for many investors with most having clearly held onto Technology stocks too long before finally abandoning in May just as many were reaching oversold levels and starting to stabilize.  The subsequent bottoming out in June/July wasn’t something many participated in.. Rather, institutions largely used the rally to sell into, flattening out and instituting short exposure.

While the drawdown from August helped to embolden many that they’d made the right decision, the bottoming out in October at levels just below June was also something that occurred at a time when Earnings revisions were just starting to be taken down.

Those who use earnings as a means for how to follow the stock market have learned a valuable lesson this year.  Despite the Federal Reserve pressing rates higher and economic conditions starting to deteriorate, it was the markets realization that inflation was starting to rollover that proved to be a more accurate reason as to why to be long stocks from October into December. Furthermore, the start of rates turning down sharply provided another important lesson that that lesson that the bond market simply had begun to lose faith in Powell’s hawkishness

Technically speaking, ...

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