The more likely cause of the selling is to wipe the slate clean and start fresh once the calendar turns over. What is most unusual about this action is that it is so lopsided right now. We have not seen any meaningful upside volatility. It has just been very dreary selling, and there is no relief from the gloom right now.
I’ve been trading for about 25 years, and I believe that 2022 has been the most difficult market that I have encountered. The bear markets in 2008-2009 and in the early 2000s were very challenging, but certain areas of the market have been in downtrends since early 2001 and still are not showing any signs of a major bottom. There have been some counter-trend bounces to trade, but the Fed has been a major roadblock and looks to stay that way for a while. I’m optimistic about the trading that lies ahead, but it will be a tough slog before the bear market eventually ends.
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