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We’re Seeing Recession-Level Selling Pressure

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In his Daily Market Notes report to investors, while commenting on recession-level selling, Louis Navellier wrote:

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Fingers Crossed

Trying to keep the late Friday rally going, the market is crossing its collective fingers that the stunning rally in the late hours of last Friday was more than an exaggeration of the increasing volatility that went on all week long.  The tech sector has already been ravaged with over 1,500 tech growth names down at least 50% from their 52-week highs.

Recession-Level Selling

Apple’s beat on Friday was the likely catalyst to the recovery on that day as well as this morning's opening green levels, especially the NASDAQ up a solid 1.5%.  The month of January, however, remains deeply in the red, with software, semiconductors, and internet sectors down double digits. The S&P 500, down 7% as of Friday is still looking at its worst January since 2009’s Great Recession.  Perhaps that is the point; we’re seeing recession-level selling pressure when we are far from that kind of economic contraction.  

We are however staring down the barrel of inflation numbers not seen in decades and a motivated central bank planning to aggressively address it and are looking at unfamiliar circumstances which have already brought a major correction to optimistic forecasts of growth, especially growth from relatively unproven companies.

Stay The Course

More earnings news from long-time stalwarts are coming this week: Exxon Mobil Corp (NYSE:XOM) & Alphabet Inc (NASDAQ: GOOG) on Tuesday, General Motors Company (NYSE: GM) & Meta Platforms Inc (NASDAQ:FB) on Wednesday, and Amazon.com, Inc. (NASDAQ:AMZN), Merck & Co., Inc. (NYSE:MRK), and Ford Motor Company (NYSE:F) on Thursday. A reminder of the real strength in well-established companies should give strength and confidence to investors to stay the course and look for bargains as we begin to take the march of the removal of monetary support headed our way at the end of the first quarter.

Coffee Beans

A North Carolina veteran turned a restaurant meal into a Mega Millions jackpot after he used the numbers from his fortune cookie "on a whim" to win a $4 million prize, the largest win in the history of Online Play in the state. The man collected the prize on Thursday, taking home $2,840,401 after tax withholdings. Source: NPR. See the full story here.