Last week was a tough one for the stock market as it fell apart on Friday, with the DOW falling over 900 points and the Nasdaq dumping to a new low for the year. But, the market tied to bounce in the middle of the week before that happened. It was another failed rally like what happened the week before that and we’ll probably get another such failed rally this week.
This is the type of market we are in now.
When you look at a long-term chart, though, the S&P 500 is only 14% off of its high. Really, this is a slow motion bear market.
It’s probably going to have a couple more leg downs (we are in the process of making one now), with sideways pause periods in between before one final capitulation bottom is made.
Luckily, gold is still showing powerful relative strength and commodities, energy, and mining stocks all remain above their 200-day moving averages. There is always a bull market somewhere, but the masses have zero interest in any of these sectors.
In this video update about the stock market I show what Robinhood Traders are now invested in when it comes to this market. Two million monthly active Robinhood traders were wiped out in the first quarter, but the remaining traders have done nothing to adjust to the bear market. We also dive into the Fidelity live trading update to get an even deeper picture of what self directed individual stock traders are doing and see how we can know when the bear market actually ends.
Fidelity top orders list:
https://eresearch.fidelity.com/eresearch/gotoBL/fidelityTopOrders.jhtml
-Mike
