The early morning green yesterday morphed into a sea of red by late lunch.
Where have we seen this before? When have we seen this before?
Its Deja Vu, but in an inverted fashion.
Over the years I've called the market action a rope a dope.
Trying to drown a beach ball.
That morning weakness getting bought an hour into the session.
And yesterday and most of 2022 its been the exact opposite. Morning squeeze higher followed by an all day sell fest.
The rally attempt goes on for the first hour of the trading session, and then it goes off.
The rally attempt goes on again the next day (as it is today) and then it goes off again.
When all is said and done prices arelower than they were weeks ago. The short term trend remains now.
Earnings that come in with a loss get crushed. Look no further than $MNDY this morning.
Great report. Stock gets crushed. $450 to $139 in 3 months.
Its a stealth bear market. We've been in it for over 6 months. The market has sniffed out the higher cost of capital coming. And those likely in need of additional capital are paying for it with their stock prices.
For at least the short term. Those looking for a reversal of the recent downtrend should look no further than that first hour of trade. Lows into the 1030am spot, an hour into the session, has a strong change of seeing stocks move higher. And vice versa.