Was That ‘The’ Bottom ?

PUBLISHED Jul 30, 2022, 6:46:06 PM        SHARE

img
imgTom Hamilton

July 29, 2022 – The question on the mind of many is: “Was that the bottom?” I’ll get right to it with a definitive ‘Maybe’. I’ll list the Pro’s and Con’s so you can decide:

The Bottom Is In –

  • Prices made it up through the 50 day moving average.
  • The Advance / Decline line has improved quite a lot.
  • Small Cap stocks are showing strength & moving higher.
  • Many indexes have bottomed out at their 200 day moving average.
  • Bond interest rates have actually come down over the past weeks.
  • The FED “appears” to be more “dovish” (leaning toward less increases).

The Bottom Is Not In –

  • The recently rally was due to short positions being covered / bought back.
  • Volume on Up bars is modest at best; not a surge of buying (yet).
  • New High vs. New Lows is just OK, not showing strength.
  • Prices are now at a resistance point back to the previous highs in early June.
  • Volume on Friday’s big move was pretty darn anemic.

So now what? I’m expecting a pull back early next week. The amount of that pullback and the volume that it creates should be an indication of the strength of this market. I found it curious that oil / energy and consumer discretionary sectors were doing very well last Friday. Not exactly what you’d expect to see if an economy was going into a recessionary period. Short covering or is somebody getting very optimistic early?

Right now I’d say what we are seeing is a ‘Tradeable Bottom’ within a Bear market, which means that a retest of the lows is likely. I could be wrong, but I’ll wait for a firm*(er)* confirmation on my daily chart.

Let’s keep an eye on the price action next week. If things are truly strong any dip will be bought and we may have an improved price structure to work with for the rest of the year. But right now, I’m not totally convinced. Have a good week. ……… Tom ………

Price chart by MetaStock; pie chart & table by www.HighGrowthStock.com. Used with permission. More Sector information at: www.Special-Risk.net



Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
The Case for Buying the Dip
Image

The case for buying the dip is based on the availability of undervalued assets in a market that has suffered indiscriminate selling.

Berkshire Hathaway Forecast ahead of Quarter 2 2022 Earnings Report
Image

Berkshire Hathaway announced its Quarter 1 2022 earnings on 30th April. During the first quarter, earnings declined due to slowing economic growth and stock market pullback. Berkshire Hathaway quarter 2 2022 earnings are expected to be published on 5th August. Let's look at the current market trends and Berkshire Hathaway's performance to determine a possible outcome of the quarter 2 2022 earnings.

What Happened to Netflix Stock? Stranger Things About the Netflix Stock Drop in 2022
Image

What Happened to Netflix Stock? A Horrible Series or just a scary episode of the Netflix Stock Drop in 2022? Let's explore everything!

Mrmd, bros
Image

Headed for substantial growth

Bank of America Stock Price Today - BAC Making Huge Revenues in a Bear Market
Image

Are you hunting the high-value stocks to make high returns even when the pessimism prevails? Bank of America Stock Price Today is just at the lowest level.

Why it’s Time to Start Buying TESLA Long
Image

Is it possible to sell Tesla, the most shorted stock globally, as a potential long buy? On 21 July 2022, Tesla’s stock surged by 10%, attributed to its strong earnings in its Q2 2022 results. The surge was an unpleasant surprise for short traders, who made an estimated mark-to-market loss of over $1 billion.

Estimating Future Stock Returns, March 2022 Update
Image

Well, finally the bear market… at 3/31/2022 the S&P 500 was priced to return a trice less than zero in nominal terms.

Feeling Risky? Marijuana Stocks May Jump From Legislation
Image

Senate Democrats Working on Bill to Decriminalize Marijuana

IS VISA STOCK A BUY? WHY & WHY NOT?
Image

Is Visa stock a buy? Let's discuss why it is a strong buy and why it is not due to the pro-cyclical nature of the stock!

Is Rivian a Buy Right Now?
Image

Take a Look at the Hot New EV Release

Should You Buy Tesla Stock?
Image

Should you buy Tesla Stock right now or after the much-awaited Tesla Stock Split expected in August?

PFIZER COMPANY AND ITS STOCK ANALYSIS AND FORECAST
Image

Pfizer, the world top class company, develops and manufactures drugs or medicine and vaccines, having approximately 3.7 billion shares on NASDAQ.

Why Should You Know About Amazon Stock?
Image

Amazon issued its IPO at $18 per share trading under the NASDAQ with symbol AMZN. Subsidiary companies Zoox Kuiper System Amazon Lab126 Amazon Web Service.

ETSY: A TOP GROWTH LONG STOCK
Image

ETSY is a well-run company and a reasonable investment for a long-term investor. The company's unique business model is increasingly taking it to the top of the game. ETSY has become the top e-commerce go-to for consumers in many categories, especially hand-made and vintage collections.

Why Adobe is a Long Buy and Analysis of Q2 Fiscal 2022
Image

When considering to purchase, it is wise for an investor to analyze a stock's past performance. Adobe stock has been growing steadily and consistently in the past. As expected with any stock, it has fluctuated from time to time, depending on the market factors, but the performance has been good overall.

With Oil Sky High, is Exxon a Buy?
Image

Pain at the Pump May Tempt Investors to Grab Big Oil

Here's How You Can Pay Your Utility Bills With Sempra Energy Stock Dividend
Image

Amid rising energy prices and the inevitable recession, the Sempra Energy Stock dividend is something you can rely on.

Why is Dominion Energy Stock Dropping? Is It Still Safe to Invest?
Image

Dominion Energy Stock is dropping for a long time, yet its dividend has not stopped attracting investors.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
user_profile
Tom Hamilton
user_profile
Wise Intelligent
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey