Special Risk Capital Management LLC

Triple Bottom ? April 23, 2022

April 22, 2022 – A rough week for the market, especially after FED and European economic news came out late in the week; a “double whammy” so to speak.  The market is expecting and discounting a ½% increase in the FED funds rates at the May 3-4 meeting.  But now there is talk about a ¾% and or multiple ½% increases over the rest of the year.  The markets LOVE cheap money and that is drying up folks, and it’s not temporary.

Back to 12555 on the NASDAQ?  It’s not that far away.  Note the low volume which equates to low commitment by investors. Few see a need to step in and buy as others are selling.  Netflix got shellacked with loosing subscribers; trouble in the streaming industry.  Tesla beat revenue forecasts and so far a mixed bag. The earnings season continues over the next 3 weeks and all eyes on are forecasts for the rest of this year.  Concerns about added expenses and supply chains continue; worries about profits being squeezed.  Add to that housing starting to cool, loan interest rates rising and general recession fears.

No surprise that the Short Term Sector Rotation table shows a continued move toward playing defense.

Likely addition selling on Monday morning, but how this market reacts after that will be important.  Do buyers step in at pick up bargains or just continue to “sit on their hands”?  Have a good week.  ..  Tom ..

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.