What if the lows are already in?

The lows in some stocks may have been seen in late April and throughout May 2022.

In early to mid June, I wrote about Buy signals appearing in various equity indices.

And while, ‘double dips’ and re-test of recent lows is more than possible……

I’ve always had a tendency to being early, rather than late.

The latter is similar to chasing a bus after it has left the stop.

If that happens, don’t move ‘heaven and earth’ to catch up to it at the next couple stops.

Just wait for the next bus.

Although by being early, you can start to think that the bus isn’t coming or perhaps it ran early and left before you got to the bus stop or worse, the service has been cancelled.

When it comes to some markets, the S&P 500 is now 7% above its June 13th, 2022 intraday low while the Nasdaq biotechnology index has risen 21% since that same week.

Stocks such as Wesfarmers, Amazon and James Hardie have risen 12%, 16% and 23% respectively from their June 13th lows.

July 8, 2022

by Rob Zdravevski

rob@karriasset.com.au