📈 The Market Sold off Because...

Understand WHY is crucial.

Market Sell-Off

I want to talk about what happened in the market today because it is really important to understand the why behind what is going on right now.

You can see that yesterday we rallied into the close after selling down on Powell’s speech where he casted doubt on the amount of rate cuts to expect in the future.

This run up was surprising to some, but unsurprising to our community. We knew that yesterday was the last day of the third quarter, meaning that funds engage in window dressing their portfolios.

That essentially means that they buy stock in companies that performed well this quarter so they can show investors that they owned those positions.

Today, now that the quarter is over, those positions unwound and large funds dumped their positions on retail.

Looking more broadly at the market, you can see that we haven’t had a single close over the CTA sell zone.

It’s clear that this is an important level in the market and if we want to see a sustained move, the first step for us will be flipping that level.

I walk through what happened today and more broadly about what is going on in the market here: