Bounce or ?
Do you think that yesterday & todays “bounce” is mainly short covering?! Or is it majority longs getting back in?
If valuation is still key, then I see no reason why companies who have slowdown in ARPU or user growth with negative GAAP FCF & EPS to be bouncing…inflation still an issue, and futures rates will still rise, in addition to a balance sheet reduction starting next month. 🤷🏾♂️
(Don’t get me wrong, I like Green Days, especially leading up to, or right after the weekend)
It could be, it could also be of many bear market bounces. Sometimes the most violent upswings happen on the way down to the bottom, and can last for a while.
I am just DCA'ing :)
Yesterday was a low but not the low in my opinion. My view is the market bounces to around $420 - $430 before extending its next leg down.
@passiveinvestor Most rallies have extended back to the weekly 20SMA which is near that $420.
Some of the most violent bounces are in bear markets so that’s why I’m saying $420, but time will tell for sure.
I’m selling cash secured puts but not longing any equities to play the bounce.