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To: Sam who wrote (87910)	1/22/2022 11:50:12 AM
From: Sun Tzu	Respond to of 95487

Thanks. I was looking at the market breadth and performance data this morning and I think the small and midcaps are very close to bottoming and should outperform SPX over the next few months. Also, not sure if you follow my thread, but I'd predicted a market sell off due to fears of economic slowdown back in late summer. I thought that it would hit in December, but it is hitting us just now. So the timeline is off by a few weeks. Such predictions are always more a rough sketch of a roadmap than precise plans. My back to normal investment thesis is that as the economy and the interest rates move back to normal and the Fed stops pumping liquidity into the market, the valuations will go back to normal too. Unless a business has transformed itself over the last 2 years, there is no reason why it should be 2x as much or even 1.5x more than it was in February 2020. One the other hand, some businesses are still below where they were in 2 years ago. And their lott will improve as the economy goes back to normal.

To: Sam who wrote (87910)

1/24/2022 4:22:52 PM

From: Return to Sender

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Market Snapshot

briefing.com

Dow	34364.50	+99.13	(0.29%)
Nasdaq	13855.13	+86.21	(0.63%)
SP 500	4410.21	+12.27	(0.28%)
10-yr Note	+4/32	1.717

NYSE	Adv 1459	Dec 1804	Vol 1.5 bln
Nasdaq	Adv 2159	Dec 1710	Vol 6.9 bln

Industry Watch

Strong: Consumer Discretionary, Energy, Industrials

Weak: Utilities, Health Care, Information Technology

Moving the Market

-- Small-caps lead intraday recovery effort; market was oversold and due for a bounce

-- Consternations about the Ukraine-Russia situation, the Fed's policy meeting, and earnings this week

-- S&P 500 enters contraction territory, Nasdaq Composite approaches bear market territory

Stocks make huge comeback after facing steep losses
24-Jan-22 16:20 ET

Dow +99.13 at 34364.50, Nasdaq +86.21 at 13855.13, S&P +12.27 at 4410.21
[BRIEFING.COM] The S&P 500 increased 0.3% on Monday in a furious buy-the-dip trade after being down as much as 4.0% intraday. The Nasdaq Composite gained 0.6% after being down 4.9% intraday, and the Dow Jones Industrial Average gained 0.3% after being down 3.3% intraday.

The Russell 2000 outperformed with a 2.3% gain after being down as much as 2.8%. The small-cap index traded in bear market territory today, or down at least 20% from a recent high, so its outperformance stemmed from the fact that it was hit the hardest.

Eight of the 11 S&P 500 sectors closed higher after all 11 traded with steep losses. The consumer discretionary sector (+1.2%) led the recovery effort with a 1% gain, while the defensive-oriented utilities (-1.0%), health care (-0.4%), and consumer staples (-0.4%) sectors closed lower.

The session opened on a weak note, which gave way to a steady decline that accentuated the market's concerns on the Fed's tightening plans, the Russia-Ukraine situation, and peak earnings growth, among others. The selling itself was a concern, too, leading to expectations for more downside -- the CBOE Volatility Index (29.90, +1.05, +3.6%) spiked as much as 35% before calming down.

There's no doubt the market was oversold on a short-term basis and was due for a bounce, but no one really knew when that would happen. Fortunately for the bulls, the bounce happened today on no specific news and some short-covering activity in front of an eventful week in earnings, the Fed, and economic data.

It's worth noting that the Nasdaq Composite bottomed just before it could enter bear market territory. The tech-sensitive index was down 19.2% from its all-time high while the S&P 500 was down 12.4% from its all-time high.

Strikingly, the Treasury market never really exhibited a flight for safety, suggesting that the early weakness was more technically-oriented. The 10-yr yield declined just one basis point to 1.74% after trading at 1.71% during the day while the 2-yr yield declined two basis points to 0.97%. The U.S. Dollar Index rose 0.3% to 95.92. WTI crude fell 2.2%, or $1.86, to $83.30/bbl.

Separately, Kohl's (KSS 63.71, +16.87, +36.0%) stood out with a 36% gain after confirming takeover interest from PE firms, which are reportedly willing to acquire the company for at least $64 per share.

Reviewing Monday's economic data:

The preliminary IHS Markit Services PMI for January fell to 55.0 from 57.7 in the final reading for December. The preliminary IHS Markit Services PMI for January fell to 50.9 from 57.6 in the final reading for December.

Looking ahead, investors will receive the Conference Board's Leading Economic Index for January, the S&P Case-Shiller Home Price Index for November, and the FHFA Housing Price Index for November on Tuesday.

Dow Jones Industrial Average -5.4% YTD
S&P 500 -7.5% YTD
Russell 2000 -9.4% YTD
Nasdaq Composite -11.4% YTD

Crude futures settle lower by 2%
24-Jan-22 15:30 ET

Dow -399.27 at 33866.10, Nasdaq -144.87 at 13624.05, S&P -56.81 at 4341.13
[BRIEFING.COM] The S&P 500 is down 1.4% to trade near session "highs."

One last look at the sector performances shows utilities (-2.4%) and health care (-1.9%) underperforming with steep losses, while the consumer discretionary sector (-0.6%) outperforms on a relative basis with a 0.6% decline.

WTI crude futures settled lower by 2.2%, or $1.86, to $83.30/bbl.