Stock prices moved lower then higher for a net change of zero through Thursday. Then came Friday. The Fed chairman spoke, and in doing so completely contradicted his statements from the prior month, and investors fled the market as a result, the Dow dropping 1000 points. 

The Fed had previously said inflation looked to be peaking and further rate increases might be few, with even rate decreases possible in 2023, giving investors reason for optimism. But on Friday, the same Fed stunned the market with pessimistic comments that inflation was far from under control, necessitating more rate increases until significantly reduced and pushing further out any future rate decreases – even warning the general public/investors to brace for some “pain.” This from the same Fed that caused this inflation in the first place by initially dismissing it at transitory and failing to act timely last spring. 

This about-face panicked amateur investors to immediately sell. and almost all stocks were down big on the day. Our analytics, however, indicate the institutions were again not among the sellers, so we continue to hold as they do. 

A mixed week for us as many of our stocks declined for the second week in-a-row, although some did hold steady or even set new highs. Very few trades signaled despite the sell-off by alarmists. 

Because this big market move happened on a Friday it gave us no chance to see a day-after reaction. Next week will give us some insight into whether institutions begin to throw in the towel on the recent rally or whether they see this as an opportunity to buy more good stocks on sale. 

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