Yesterday the market was once again slightly oscillating. We often find the market suddenly running up or down in a straight line. The volatility suddenly becomes larger and returns to a narrow oscillation. The reason is that the current market has become illiquid. Under the negative atmosphere of the bear market and the crisis of confidence brought by FTX, the market's depth and investor activity depth have fallen to a freezing point.
So the seemingly swift market on the trim cycle, only a little money is participating. This conclusion can also be drawn from the volume. The characteristics of the bear's end are becoming more apparent. The process of continuously following an increasingly negative market can be somewhat torturous. But every day that passes is one less day for the bears.
For now, the CPI data and rate hike resolution in mid-December is well worth watching. The Fed will likely start slowing down the rate hikes if the CPI data can also accelerate the decline, which leaves little time for the bears.
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