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Amazon’s Very Bad Day And McElligott On Friday’s Selloff
A very bad month for US equities closed on a decidedly dour note Friday, when stocks careened nearly 4% lower in one of the most painful single-session routs since March of 2020.
April was already poised to be the worst month for Wall Street since the onset of the pandemic, so Friday's gratuitous bloodletting was just insult to injury.
The Nasdaq notched its largest monthly decline since the financial crisis (simple figure below).
Considering Lehman was (checks watch) almost 14 years ago, A
I have been thinking there may be a “relief rally” after FOMC. Wishful thinking?
That’s the game I’m playing, although I expect to get an opportunity to pick up more SPY/QQQ Monday…
There will be one. It’s just a question of how low assets need to go before there’s nothing else to sell. I suspect many people loaded up in the last rally, so the next one is coming after outflows go parabolic. We aren’t there yet.
I’ve found TSLA, the beacon of monetary largess, to be a good indicator of an upcoming rally. But its graph is begging for a retest of the downtrend (~$650). I wouldn’t get back in until then.