Market correction? Hmm.

[jonnyfrank]

The idea of a market correction seems to be losing steam. With CPI numbers coming out tomorrow morning and the data always looking better than perhaps it actually is, could it be that the government is refusing to let the market correct anymore? My short positions are failing. I'm thinking there will be no correction, or that is happened already and it is back to the races.

[MarkD]

As Sol has stated, some of the high flyers will get chopped, the remainder usually follow but to a much lesser extent.

My bet is NVDA will drop quite a lot more. Twitter is full of folks who analyzed their books and note they resemble ENRON. Apparently selling chips to a subsidiary that is sitting on "dead money".

Dunno, time will tell. Short term I do see a rally underway.

[SOL]

Markets can release steam quite rapidly; it only requires a major firm to initiate selling and anything could trigger that. However, now that sentiment data has returned to a more balanced state, what matters most to us is the level of bearish or neutral sentiment. If either of these readings reaches the 50 to 55 range, we would view it as a signal to increase the amount of money we commit to the markets

In the interim, we will continue to invest modest sums of money into stocks that have experienced a decline or are trading at attractive levels.

[bpcw]

Be interesting to see sentiment figures tomorrow, if bullish figures are still quite low it could indicate we are going to continue this upward move but if they have gone up considerably it will probably mean the downtrend/correction will resume soon and we could see new lows before the main correction is over and again we see bearish figures 50 and over and a bottom, as Sol indicates.

I wouldn't be surprised to see bullish readings have gone up quite a bit and the FOMO's piling in thinking we're back in 'to the moon' mode, not sure the correction we have seen is enough to blow away most of the weak hands.

[jonnyfrank]

Sounds like the short play is off. Duly noted.

[bpcw]

Sounds like the short play is off. Duly noted.

If you mean from the sentiment readings out today, It's not an exact science, we could still resume the correction, it's just that a high bullish reading say of 50 would give a high probability of a resumption, and a similar bearish reading a high probability of a bottom nearing.

Crypto's are falling again and could be leading the way.

Shorting is high risk, the safer option is to accumulate good stocks when the correct.

[jonnyfrank]

Yes, shorting is high risk, and that is why a have a separate account for it. It is a relatively small percentage of my holdings, but there is something about catching a short wave that is especially exciting. The market is in an interesting place right now. I have a hunch it will correct more, but hunches don't deserve more than a small percentage of our portfolios, lol.

[jonnyfrank]

I did buy some FNGD just now. We shall see.....

[AstuteShift]

Short term, I have a buy signal with the markets. Too many bears in various social media platforms and calling for a credit event to occur etc

China, long term I despise them and still see them collapsing but at this moment in time, I see a buy signal. The CCP bottomed their market and will do whatever it takes to juice them up in the next couple of months.

Nvidia could fall, however timing a parabola stock is pointless and I would rather look at other suitable priced AI names. Two examples for the long term is META and AMZN. Meta with the meta verse theme and powerful AI they have and AMZN absolutely crushing earnings. Let the sheep chase the parabolas

Even if the markets dip, I’d say 4200-4300 on SPX is the floor at most. That dip should be heavenly embraced, could give juice to SPX for 5000+ run

[SOL]

Yes, shorting is high risk, and that is why a have a separate account for it. It is a relatively small percentage of my holdings, but there is something about catching a short wave that is especially exciting. The market is in an interesting place right now. I have a hunch it will correct more, but hunches don't deserve more than a small percentage of our portfolios, lol.

Shorting is high risk, but if approached wisely, which is what you are doing, it can yield decent to great returns. However, one has to be nimble, which is why many question its value, as they don't want to spend the extra energy monitoring these plays. You can go from big gains to zero and then negative very fast. I am looking for one more development, and then I will short NVDA via puts, but only allocate a small amount and purchase very distant puts.

Overall, I am accumulating stocks that look attractive. I continue to nibble at PALL, but with all the nibbles I have taken, it's becoming akin to a relatively decent-sized bite. I am also looking at MPW as it finally met some of our metrics - for example, it's extremely oversold, has a good P/S ratio and a hell of a lot of people are shorting the hell out of it. Oh yeah, it also pays a decent dividend.

As for the SPX, when bullish sentiment surges, markets don't experience a painful pullback until bullish sentiment surges to the 60 plus range. It did not do that in this cycle, which means the next pullback has to be embraced. The SPX should be able to hold 4160 plus or minus 60 points on a weekly basis. It could drop (keyword being could) to below 4100, but if that happens, it should be viewed as a splendid opportunity to load up.

[MarkD]

Here's a chart which I find to be extremely interesting. It's been a long time since industrial construction has been this strong. One reason for inflation and the lack of for over three decades, has been the downturn in domestic manufacturing. The factory guys may never make bank again, but it's going to take some time before heavy construction workers are impacted.

The main reason for immigration, labor and military, jobs indigenous will not do. Mike Rowe dirty.

The CHIPS ACT put an emphasis on semi's but it will possibly extend well beyond, and if Sol is correct, to power plant construction. A lot of residential and commercial activity has occurred but some firms which I recall were ENR Top 100 (Engineering News Record) have shrunk or disappeared in my lifetime. The rest became ginormous (Bechtel, BWXT, Fluor, etc).

The companies in this ETF are a mix of industry which are overlooked, hence, if this bifurcation of the world continues, they should do well.

https://ibb.co/kyym29g

[bpcw]

I am also looking at MPW as it finally met some of our metrics - for example, it's extremely oversold, has a good P/S ratio and a hell of a lot of people are shorting the hell out of it. Oh yeah, it also pays a decent dividend.

Bought a few days ago!

[jonnyfrank]

Looking forward to that update! The markets seem to be teetering on something!

[JayceP]

I am also looking at MPW as it finally met some of our metrics - for example, it's extremely oversold, has a good P/S ratio and a hell of a lot of people are shorting the hell out of it. Oh yeah, it also pays a decent dividend.

Bought a few days ago!

I was salivating when MPW plummeted last night and elected to double down on my investment, this morning.

At face value and if only for demographic factors, I would have trouble to come up with another sector (other than hospital care) for which demand is almost guaranteed to explode, during the next decade. As the US's largest hospital landlord, and given how oversold that stock already was in the first place (before today), it almost seems as if their worst case scenario has already materialized, whereas the potential upside remains immense.

Has anybody else at T.I. jumped on that discounted (albeit risky) play, today?

J

[MarkD]

Added at $4.24.

Agree but recognize the hospitals are pushing "hospital at home". A friend's wife has been dealing with an issue. She was hospitalized for a few days, sent home and has daily visits from staff.

I presume they need the beds so one reason for this alt.