The market may reach a temporary bottom
4 Oct, 2022
Category: Portfolio
Tags: Market Watch
Some signs that the market is reaching a temporary bottom.

1) Market is rebounding despite the risk of Credit Suisse collapsing

2) S&P 500 Volatility Index (Vix) is falling

3) Bond Volatility Index (MOVE) is falling

4) The spread between Germany 10 Year Bond and Italy 10 Year Bond is still under 2.5%, a critical level mentioned by European Central Bank (ECB)

5) British Pound is rebounding strongly


6) Big companies like Tesla and Apple are falling fast. Usually, when blue chips counters plunge, it marks the end of the current market trend
However, we are still in a Quantitative Tightening (QT) environment where money is going to be lesser. This rebound could be a good time to unload some of the stocks or to start a short position.
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