Is The Stock Market Hurricane Over?
It sure feels like the seas have calmed and our first hurricane in over 10 years is over. However, before we "float all boats" going all in on this ocean, let's take a look at a these two key points from previous hurricanes:
1. Does being up 38% from the bottom, 2192 on March 23, 2020, mean that the hurricane is over?
- As stated earlier, both previous hurricanes had multiple High Tide moves greater than 20%. The Tide we are either in or just ended is up 23%. This is right in line with 5 tides in the previous hurricanes that were up 22%, 23%, 24% (twice) and 25%.
Deciding when to sail (buy) is a challenge but hopefully history helps us manage our emotions and avoid unsustainable optimism. The winds (VIX) are still strong around 28 knots, patience is key.
Fair winds and following seas!
Trading Tide Levels (at the time of the post):
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