E The Market Is In Full Recovery Mode

The updated graph below confirms the market is in full recovery mode from the recent correction. All S&P sectors are up over the past month being led by technology stocks as usual. Plus, March is usually one of the more profitable months for stocks.

Paul Hickey, the co-founder of Bespoke Investment Group, told CNBC that, since 1983, the S&P 500 has posted an average gain of 1.46% in March. During the current bull market, the index has performed even better in that month, with an average gain of 2.95%, he notes. When March showed a gain, the average advance was 3.6%. Investors have been fixated on inflation and last Friday job number reported an average hourly earnings miss to quell inflation fears.

The long-term bull market remains in place after the recent correction which provided and an opportunity to “buy the dip”. Market direction is starting to display a propensity to change instantaneously so hedging strategies are appropriate in this environment. Especially with Quadruple Witching day coming up this Friday which often generates increased trading volume and volatility.

 

Disclaimer: Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to ...

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