Online Stock Trading | DANGER ZONE!

DANGER ZONE!


Filed Under Market Commentary |

We are right in the danger zone.

Major distribution day. Again, everyone should be on the sidelines unless you have stocks that are acting well. ? Acting well, low volume pullbacks or even rallying to new highs on STRONG volume. These are few and far between so don’t kid yourself.

Talking heads are blaming inflation fears and the FED raising rates. If anyone knew what inflation was they’d realize that it is when you have too much money chasing too few goods. Just because a gallon of gas goes up 2 dollars does not mean its inflation. However, I believe the Fed was not aggressive enough during the 16 rate hikes. How does gold rally from 450-700? How does oil rally from 30-75? Simple answer is that sellers are demanding a high premium…but we were sitting at record low Fed Funds rate…the Fed flooded the market with cash! So, now the Fed didn’t act quick enough…now they are in danger of going too far.

For now, we must be vigilant, study each move the market makes…

MktSpec

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