Tag: Bear Market

SPY Stock Continues to Make Lower Lows and Lower Highs

December 14, 2022 / Frank Nez

Market Trend: The S&P 500 (SPY Stock) continues its downward trend.

Looking at the SPY for the year and we see that the market continues to make lower lows and lower highs.

SPY stock took a big hit on Wednesday during JPOW’s speech, dropping from $405 to as low as $396.

The index closed at $399.40 but continues to be on a downward trend.

Zooming out to the full year and we see the SPY started off in January at $477 per share.

By the end of the first quarter, we see a high of $461 per share and a low of $417 per share.

In June, we see a low of $365 and a peak of $426 by the third quarter of 2022, in August.

This fourth quarter, SPY stock had a low of $348 in October, and a high of $414 in December.

SPY Downtrend Chart - Franknez.com. — SPY Downtrend Chart – Franknez.com.

Will The Stock Market Go Up Soon?

Based on the current trend we’re seeing from the S&P 500, it doesn’t seem like the market is ready for a bull run anytime soon.

Buyers failed to break the downward trend as seen in the figure above which means the probability of sellers coming in again is high.

In terms of the economy, inflation is still high at 7.11% and mass layoffs have been seen with DoorDash, Amazon, Facebook (META), Twitter, Netflix, Carvana, and many other companies.

Although JPOW said the U.S economy is currently not in a recession, both Bank of America and Wells Fargo CEOs expect a recession to hit the country during the first quarter of 2023 with some sort of light at the end of the tunnel by Q4.

“While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%,” Bank of America’s CEO Brian Moynihan said.

Wells Fargo CEO Charlie Scharf said, “there is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year (2023).”

If this happens to be the case, today’s bear market may drag out through the majority of the new year.

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Do you see this downtrend in the stock market continuing throughout 2023?

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Is Now the Time to Buy or Sell in The Market?

November 10, 2022 / Frank Nez

The markets seem to be nowhere near a bounce as both stocks and crypto freefall; is now the time to buy or sell in the market?

If you’re part of the small percentage that’s in profit, maybe liquidating has come through your mind.

Especially if you’re looking to protect your capital and wait for other opportunities.

But what if your portfolio has suffered significant losses?

Is it best to cut your losses and conserve whatever cash you have left?

This article is going to provide you with perspective on ways to not only protect your cash during this nasty bear market, but also how to identify opportunities to multiply your wealth.

Let’s dive right into it.

Should You Buy or Sell?

Whether you should buy or sell in today’s market conditions will depend on how liquid you are and on your future and current investment plans.

Value investors looking to add stocks to their long-term portfolios could benefit from buying the markets lows, though it’s important to keep in mind that the markets are still susceptible to fall.

Dividend stock investors could also benefit from buying these lows.

Diversified investors who are looking for the next opportunity may want to liquidate positions to have cash ready when the time is right for the next move.

Whether that be waiting for real estate opportunities or other markets to tumble, this will highly depend on an individual’s needs.

With so much uncertainty in the markets at the moment, the best thing investors can do is create a plan to guide their investment goals in the right direction.

Identify what you’re aiming to achieve when investing in the market.

Is it long-term capital gains?

Income?

And decide what it is you need to do now in order to meet your investment needs.

Bitcoin Falls Under $16K, Crypto Down

Crypto News. Bitcoin news. — Crypto News: Bitcoin News.

Bitcoin (BTC) fell under $16K on Wednesday.

Peter Schiff warned investors in a Twitter space call to sell Bitcoin today as the cryptocurrency could be headed towards lower levels.

@PeterSchiff says sell #BTC now
— Frank Nez 🇺🇸 (@FNez_Blogger) November 9, 2022

The economists said he does not own any Bitcoin but urges holders to buy back in after a market collapse occurs in the crypto space.

On the other hand, FTX is causing a ruckus as the token falls more than 90% in the past 7 days with nearly 60% happening in the last 24 hours.

FTX investors include:

BlackRock
Ontario Pension Fund
Sequoia Paradigm
Tiger Global
SoftBank
Circle
Ribbit
Alan Howard
Multicoin
VanEck
Temasek

In recent crypto news, Binance backed out from saving FTX leaving the crypto on the brink of collapse.

FTX CEO Sam Bankman-Fried said that without more capital, bankruptcy is likely.

Stock Market Rains Blood

Is now the time to buy in the bear market?

Stocks continue to bleed as the Fed struggles to maintain economic structure and institutional investors liquidate the market.

The NASDAQ and SPY have seen improvement in the past month, but economists, CEOs, and media influencers say the market has plenty of room to drop.

Stocks fell sharply on Wednesday, a day before CPI announcements.

Poor consumer reports could cause stocks to fall sharply again.

Traders should trade with caution.

With inflation affecting millions of families and corporations such as Netflix, Facebook (META), Twitter, and Tesla laying off tens of thousands of employees, a recession looms.

Whether you decide to buy or sell in today’s markets will ultimately depend on how liquid you are and whether you’re prepared to face a highly likely recession in the coming months to year.

Creating a plan and identifying what you can and cannot do financially as turmoil hits the economy is your best bet of riding this wave.

Do you plan to buy or sell in the market today?

Leave your thoughts down below.

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Bear Market Becomes Official: How Long Will It Last?

May 23, 2022 / Frank Nez

Bear Market Official — The stock market officially enters a bear market, but how long will it last?

We momentarily entered an official bear market when the S&P 500 fell 20% for the third time.

The stock market rallied today with the SPY and NASDAQ up almost 2%.

Media seems to be in denial, but bear rallies turned into a bear market a while ago, without the official title.

And although today seems to be a green day – the question is, how long will this bear market last for?

Let’s discuss it below.

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Let’s dive right into it!

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Stocks have tumbled all year

Taking a look at the SPY (S&P 500), and we’ll find that the index is down 17% year-to-date.

The top 500 companies in this index have also been down trending all year.

Tech companies have taken a heavy hit this year.

And the NASDAQ shows it.

The NADAQ is down more than 27% this year-to-date.

Netflix (NFLX) is down almost 69%, Tesla (TSLA) is down 44%, and Apple (AAPL) stock 22%.

Hedge funds deeply invested in tech companies have suffered big losses this year already.

The Tiger Cubs are a group of hedge fund managers who are currently treading in dangerous waters.

These asset managers are ditching many positions creating massive selloffs, according to SEC filings.

Stocks rebounded today – how long will these bear rallies last?

The stock market bounces back

The stock market has momentarily bounced back staying clear from bear market territory.

SPY stock seems to be making its way back to the $400 per share level.

I’ve mentioned in previous articles and videos that the SPY seems to be respecting the $400 per share level relatively well.

Although stocks officially entered bear market territory, it’s very possible the SPY and market in general are bottoming out.

Stocks have seen all-time lows during these bear rallies but have since come up from these surprising lows.

Robinhood (HOOD) hit a low around $8 and change, now it’s trading above $10 again.

AMC Entertainment reached $9 and change, went back up to $13, and is currently trading close to $12.

GME stock on the other hand seems to have a hard time getting below $90.

The stock rose to $100 per share last week and is currently trading at $96 per share after it announced the launch of its new crypto and NFT wallet.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Honestly, it’s a 50/50

I stated in a recent video that because we have seen mainly bear rallies all year long, it’s possible the SPY breaks downwards below $400 per share and we continue to see this downtrend.

Well, that happened last week, and we were officially, but momentarily, in a bear market.

Today we saw a small bounce back staying clear from that title.

But it’s still unclear whether the market has bottomed out yet or if there’s still room for stocks to fall.

Have the markets cooled off?

Is the market ready for a reversal?

What do you think?

Leave your thoughts in the comment section of the blog below.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

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