Thursday, May 12, 2022

Market declines continue

With the losses adding up we can start tracking the relative performance of the indices against their 200-day MAs.  We can see from the table below how the relationship of the indices to their 200-day MAs compare historically.  

The Nasdaq is 21.6% below its 200-day MA, which puts it into the 5% zone of historic price weakness and is a "Strong Buy".  The S&P is 12.3% is below its 200-day MA, which is also in the 5% zone of historic weakness.  Finally, the Russell 2000 is 18.4% is below its 200-day MA, which is also the 5% zone.  For each index, we are repeating the action of the Covid 2020 sell off, and the Russell 2000 is only a few percentage points away from the 1% zone and a "Very Strong" buy.

For the Nasdaq, the last time we hit the 5% Strong Buy zone was October 2008.  People should be buying here.


If you are an investor, stocks are worth buying - Crypto - probably not :) Here are the charts

You've now read my opinion, next read Douglas' blog.

Get a 50% discount on my Stocktwits premium account with 14-day free trial. Use coupon code fallondpicks at Fallondpicks Premium to get the discount.

Share on StockTwits

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter


Investments are held in a pension fund on a buy-and-hold strategy.

 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c