We believe we are heading into a stock market down trend so we wondered where the traders psychology is heading. An article from Bloomberg notes that $11 billion has left the stock market.
The nation’s stock funds had outflows of $10.9 billion in the week to Sept. 7, according to EPFR Global data cited by the bank. The biggest exodus in 11 weeks was led by technology stocks, which saw withdrawals of $1.8 billion.
Bloomberg.com
There is a well known “Wall Street Cheat Sheet” that starts circulating during downturns and we’ve seen this pop up on several sites this week.
We wanted to map the WSCS to a chart of SPY and we overlaid where we think we are right now.
The comparison seems a bit spot on doesn’t it? We may be somewhere between anxiety and denial and we expect a full blow panic in 2023 at some point although it may come sooner if we have any extraordinary events happen between now and then.
There is plenty of opportunity to make money in markets going up and down. As we’ve noted, we have positioned ourselves with PUTS in a variety of ETFs/equities and will continue to research other opportunities to invest.
There will be PANIC soon so stay tuned and stay solvent….