Stock Market Breaks Lows Amid Russia Fears: Boise Cascade Dives; Public Storage, Axcelis Setting Up

TL;DR

Market conditions worsened as major indexes broke below their January 24th lows, signaling a potential downtrend.

Transcript

good afternoon everyone and welcome to stock market today ali quorum and ed carson here with a look at the action in today's session where we saw market conditions continue to deteriorate today ed yeah all the major indexes finally undercut their january 24th lows we've been waiting for it here it came we are going to take a look at boise cascade w... Read More

Key Insights

• 🌸 Breaking below the January 24th lows signals a potential downtrend and the loss of previous gains.
• 🔈 Higher volume distribution days indicate stronger odds of the market rally undercutting ultimate lows.
• 🖤 Lack of positive signals suggests the need for defensive trading and patience in waiting for proper chart patterns to form.
• 😘 Low PE stocks can still plummet, emphasizing the difficulty of finding safe havens in the current market.
• 🫥 Stocks with an RS Line blue dot should be on watch lists, as opportunities can arise when market conditions improve.
• 🫥 Excellus Semiconductor Equipment, despite falling, shows potential with accelerating growth and an RS Line blue dot.
• 👀 Scruffy-looking stocks are to be expected in the current market, and investors should focus on volume accumulation and relative strength.

Questions & Answers

Q: What significance do the January 24th lows hold in the market rally?

The January 24th lows serve as a crucial support level for the market rally. Breaking below this level indicates a potential downtrend and the erasure of gains made in previous months.

Q: Are there any obvious levels of support for the major indexes?

Currently, there are no clear levels of support for the major indexes. The NASDAQ Composite may find support at 13,000, but overall, the market lacks visible support levels.

Q: What kind of market conditions are investors facing?

The current market conditions are characterized by relentless selling and a lack of safe havens. Low PE stocks like Boise Cascade are not immune to significant declines, and it is challenging to find reliable safe havens.

Q: What should investors focus on during these market conditions?

Investors should focus on staying engaged in the market and keeping an eye on stocks with an RS Line blue dot. While caution is warranted, conditions can change quickly, and identifying potential opportunities is essential.

Summary & Key Takeaways

• The NASDAQ Composite, S&P 500, Dow, and Russell all experienced significant declines, breaking below their January 24th lows.

• The market rally's ultimate defense was breached, erasing gains made in late January and early February.

• Higher volume distribution days and lack of positive signals suggest a need for defensive trading and waiting for proper chart patterns to form.