Posted in Newsletter
By: Tom Gentile on March 2nd, 2022 • 1 min read
Stock Market Correction
If a correction is deemed as a 10% drop from a security’s recent highs then it looks like 2 of the 3 big indices (represented by their tracking ETF DIA and QQQ – tracking ETF of the NASDAQ 100) are already in correction mode.
I, along with many others (financial news networks, print and media) have been speaking to the tensions being a large contributor to the volatility and end result slide the markets are experiencing.
That doesn’t mean I have forgotten about the concern of high inflation that the Fed is battling.
Apparently there is a 100% expectation of the Fed raising rates for the first time in quite a while.
The concern was how much on the first hike, a quarter-point, or a half-point?
Wouldn’t it be something if the markets are pricing in this imminent hike and maybe there is a sell the rumor, buy the news reaction next month when the decision comes in (March 16 is the date we get the announcement).
That is to be seen, but what we do know is going on now is the markets are at fresh closing lows and it could go lower.