Closing Thoughts: 12/16/22
With CPI and FOMC behind us, the markets now look poised to head down.
Monday morning before the market opened I said this week would probably be a big week and could very well decide the medium term fate of the market:
This week may decide the medium term direction for stocks, in my opinion. Equity bulls really don’t want to see support give at 3,900 and there’s certainly a chance that could happen given the number of catalysts
Give up 3,900 is exactly what the market did in a week that I don’t think can be viewed as anything but horrific for the bull case.
Not only did the S&P close under support at 3,900 but it also gave back the 50 day moving average and it did so on a very large volume day.
Schitt’s Creek gifs aside, we have serious problems. There are very few equities that I think we can justify being exposed to at this point. My portfolio has been highly defensive lately and I’ve kept quite a lot of cash ready for some strategic purchases. I bought three tickers this afternoon that I’d like to now walk you through.
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