Market really heading into correction? Or is it just a blip?

PawsAndProfits
08-20

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.

$Invesco QQQ(QQQ)$  $SPDR S&P 500 ETF Trust(SPY)$  $iShares MSCI Japan ETF(EWJ)$  

With key indices such as QQQ and SPY extending losses for second day straight, do the whales think that AI related tech stocks are finally overextended in their valuations, which is reflected in the pullback? This bearish signal is definitely backed with volume. However looking at past few months, bears usually would not last long. So position yourself properly, have your stop losses intact to ride this choppy market.

And everyone thinks that stocks are still correlated to bond prices. I would beg to differ and like to challenge that belief, I feel that DXY (US dollar index) is more correlated as compared to stocks. Please do feel free to express your thoughts on this and what do you think of this bearish pullback. Will it stay? Or is it just a blip?

@PawsAndProfits - Specialist in combining FA and TA for options selling and swing trading.[666]  


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Warsh Debuts Hawkish at Jackson Hole; September Hike Odds Near 60%?
Warsh's Jackson Hole debut was not ambiguous. He reaffirmed the 2% PCE target, said modest disinflation is not enough to confirm a trend, and left room for more hikes if inflation does not keep falling — read as the most hawkish Jackson Hole in years. Markets moved fast: September hike odds near 60%, two more priced by March 2027, the 2-year up more than 10bps. This time the front end did the work, not the long end: QQQ −0.65%, spot gold back from $4,649 to about $4,478, Bitcoin down to $77,779. Tech, gold, or BTC?
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Comments

  • PeteLeacock
    08-20
    PeteLeacock
    Volume looks more like profit taking than panic to me. Short term bearish, but if QQQ and SPY hold the 50 MA this still feels like a technical reset
    • PawsAndProfits: 
      Agreed! 🙌. Thats why my QQQ call spread was sold with an expiry on this friday. Dont reckon bears will stay for long.
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