January 1st 2023
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Key Takeaways
- Sentiment is increasingly hitting extreme levels
- Currently, the quality of the downtrend still looks too strong to catch a falling knife
- Thus, the current risk-/reward ratio still looks too low for a strategic bargain hunt
Market Review |
U.S. stocks finished the final week lower. The Dow Jones Industrial Average closed at 33,147.25 and ended the week 0.2% down. The S&P 500 edged 0.1% lower for the week to finish at 3,839.50. The Nasdaq closed out the week down 0.3% to end at 10,466.88. Friday marked the final day of trading in what has been a painful year for stocks. All three of the major averages suffered their worst year since 2008 and snapped a three-year win streak. The Dow Jones Industrial fared the best of the indexes in 2022, down about 8.8%. The S&P 500 sank 19.4%, and is more than 20% below its record high, while the tech-heavy Nasdaq tumbled 33.1% (
click here for more relevant market relevant statistics). Among the key S&P sectors, financials were the best weekly performer, while the materials sector dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 21.7.
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