Yesterday Feb. 24 (Thursday), I saw the most incredible recovery with the Dow starting at -900 and Nasdaq -450 pre-market, and the Dow end up closing at +92 and Nasdaq end up closing +436. So, the Dow recovered almost 1,000 points and Nasdaq recovered almost 900 points in a few hours. Institutions were buying on the dip.
Today (Feb.25), we see the Dow up another +835 points and Nasdaq up +221. Again, institutions were buying.
The sentiment is that the Fed will slow down the interest rate hikes, and let inflation continue due to the war. I still think they will raise rate by 0.25 in March, but they are not going to speed up raising rates after that, and they will blame inflation on higher oil prices on the war, etc.
The SEC and DOJ also continues to look into Short Selling. Not sure if the US government will scrutinize Short Selling from Putin and Russia as retaliation, in addition to cyberattacks. Russia has frozen short selling, so I guess the Russian mafia can't short the US market .
At any rate, I think the market will recover from the Jan-Feb doldrums.
Today (Feb.25), we see the Dow up another +835 points and Nasdaq up +221. Again, institutions were buying.
The sentiment is that the Fed will slow down the interest rate hikes, and let inflation continue due to the war. I still think they will raise rate by 0.25 in March, but they are not going to speed up raising rates after that, and they will blame inflation on higher oil prices on the war, etc.
The SEC and DOJ also continues to look into Short Selling. Not sure if the US government will scrutinize Short Selling from Putin and Russia as retaliation, in addition to cyberattacks. Russia has frozen short selling, so I guess the Russian mafia can't short the US market .
At any rate, I think the market will recover from the Jan-Feb doldrums.