I doubt we rally. I ran through charts last night real quick and many are what I call "waterfalling". Accelerating into freefall. I'm also seeing a LOT of new lows, near lows and reversions back to old trend lines in old hype stocks.
Look at MMM, ALB, TAN, all the old EV & charging station/battery stocks like ENPH, BLNK etc. AA, ADM, PFE, I can go on and on. It reminds me of November 2020 when I first started getting active again because everything was hollowing out.
I will be watching what happens soon when we get to where we had stalled months ago. XLI was pinned around 100, XLF 30, XTN 70, DJI 33800, R2K 1750, etc
My old dividend plays from last year that I exited once short term treasuries got high enough to switch to are all making new lows. THQ, DNP, XLF etc. Even what is thought of as "safe defensive" consumer staples XLP is threatening to make new lows. While utilities bounced recently, I expect them to drop again. Why accept 3% yield when short term treasuries are yielding 5.3% and higher? |
