In his Daily Market Notes report to investors, while commenting on the crypto meltdown, Louis Navellier wrote:
Bargain Hunting Begins
Bargain hunting begins. Stocks are no longer free-falling in the face of higher interest rates. Investors are picking through the rubble of the worst damage to tech names since the Dot Com bubble popped. The dip may not be over yet, but panic has subsided.
Our survey this week revealed that retail investors are still bullish, with 82% believing that the markets will end 2022 in the black. One respondent also believes that "tech growth will moderate and other sectors will catch up a bit."
Crypto Meltdown Continues
Despite a disappointing December employment number, 199K was half of expectations, unemployment fell to 3.9%, lower than expected. At the same time wages grew faster than expected keeping inflation concerns hot. The bond market reaction was to boost yields another basis point across the yield curve. Inflation remains the focus, and the Fed's plans to deal with it.
The market's indigestion of the monetary punch bowl possibly being taken away faster than expected seems to have reached some sort of short-term equilibrium and the NASDAQ is clawing its way higher this morning, with the S&P and Dow near breakeven. The one asset class that continued to trade down on the hawkish Fed notes this week is crypto, perhaps the most speculative asset class, down nearly 40% from the November high.
The market continues to look through the spiking Omicron numbers, focusing on the much lower hospitalization and death rates, and the resulting resistance to instituting new lockdown rules. Hopes remain that we are near the beginning of the end of the pandemic, which explains the Fed's willingness to begin to address their bloated balance sheet, rather than backpedal in the face of so many people isolating themselves with positive Covid test results.
Expect a bottom to be formed soon, and new strength to come when the Omicron numbers start falling as fast as they rose, and earnings results start coming in with confirmations of strong 2022 forecasts.
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A manatee was rescued from dry land after it was stranded at the side of a road when storm waters receded. According to the wildlife officials, the manatee was likely able to swim near the side of the road in the rising waters, and it became stranded once the water receded. The manatee was rescued and transported to SeaWorld for evaluation. Source: UPI. See the full story here.