This is a market of stocks at present.
Not all stocks are acting the same. Some sectors and specific stocks have gone parabolic the past few weeks, and are overextended and in need of a pullback. Other sectors and names have been taken to the woodshed so far in 2023, and are oversold.
This makes trading more difficult but provides those with some experience and expertise in technical patterns an edge for now. We have been trading long and short in stocks that are overextended either way. It’s working for us so we’ll stay with it until it doesn’t.
As far as the market as a whole goes, the pullback we anticipated is about a week old and could have a little further to fall. But we aren’t seeing any signs of anything beyond just a garden variety retreat and could be setting up for further upside beginning any day now. We’ll see how far that one wants to go to help us determine whether this early-year rally has some real legs, or whether it’s just another bear market rally.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.