Here are 3 simple market studies
The NASDAQ just did something that’s extremely rare
The NASDAQ has done something very rare over the past few days.
- 2 days ago, the NASDAQ gapped up and then sold off for the rest of the day.
- Yesterday, the NASDAQ gapped down and then rallied for the rest of the day.
- The daily CLOSES over the past 2 days were within 0.1% of each other.
- The sample size is very small. n = 3
- 2 of the historical cases don’t apply to today. The 2009 historical case came after a massive 50%+ bear market. The 1990 case happened in the middle of a “big correction”.
XLE (energy sector ETF) has gone up 10 days in a row
Stocks tend to make a short term decline during rate hikes (i.e. this week)
The Fed is expected to hike interest rates this week. During the current rate hike cycle, the stock market has typically experienced some short term weakness (couple of days) during a rate hike.
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