May 26, 2022
By Scott Wohlers
Even though the internal technicals of the stock market continue to improve, the day-to-day volatility is still violent. Huge losses in individual securities one day are sometimes followed by just as dramatic recoveries a few days later. This action is also similar in the broad market averages. In the meantime, positive divergences are increasing, more stocks are showing positive money flows, and there are more positive days.
A dramatic and clearly defined bottom may not be what we get to this correction. Instead, it may be more of a process. Perhaps a trading range gets established then turns into a gradual recovery. It may simply take time to rebuild confidence. Investors may also want to see how our economy progresses. However, expect plenty more drama and volatility. This is the time to sit steady in the boat and be patient. There is a rainbow after every storm. The future for business is not bleak. Plenty of good news to come!
El Toro Solo
