January 5, 2022

The Nasdaq put in its worst day in 10 months Wednesday as selling accelerated after the minutes of the Fed's meeting a month ago were released at 2 p.m. ET. The minutes indicated the Fed had discussed speeding up the timetable for lifting the fed funds rate, its key policy lever.

Aggressive growth stocks were particularly hard hit. Their proxy, the ARK Innovation ETF (ARKK), plummeted 7.09%, its worst loss in 16 months.

The S&P 500 is the leading index and sits just above the 50 ma, though below the 20 ema.

The futures market has historically been accurate at forecasting the timing of moves in the fed funds rate. It is now discounting (pricing in) a Mar 16 hike, which would be the first in a new series of moves.

From the Twitter feed today: "You are only ever four days away from the rally of your dreams." (This refers to the O'Neil follow-through day always being as short as four days away, no matter where we are in a down trend.)

In summation, cash is king.

Kevin Marder

Trading Lessons
Introduction to the service video (38:00)
Money management and risk management video (20:27)
Bread and butter pullback video (11:10)
Bread and butter pullback: Pt II video (15:09)
Bread and butter pullback: Pt III video (31:48)
Bread and butter pullback: Pt IV video (30:16)
System R
Short-selling video (25:53)