Market Assessment: As of Monday, April 25 at 4:05 a.m.
In our Market Letter of April 18, we stated that the Market (The DOW) was struggling and could be headed lower and that if the DOW closed below 34,000, we would be selling our major positions.
On Friday, April 22 the DOW was down 981.36 points and closed below 34,000 to 33,811.40 – with a vengeance.
We believe the Market is now in the beginning stage of a BEAR Market and could decline as much as 10,000 points before it’s all said and done.
Joe Cotton
In a Bear Market, you can lose everything if you are on Margin. Get Off of Margin.
We would selling our major positions and moving to the sidelines and waiting for lower prices, and the bottom of the Bear Market.
In March of 2009 we called the Market bottom, and we had advised our subscribers to sell in December of 2007.
In the 30’s husbands jumped off of rooftops because they had lost everything and couldn’t face their wives.
It could happen again in a catastrophic bear Market.
We would be especially selling and taking profits on the following stocks that are trading at the high end of their historic range.: Google (GOOG) 2392.28; Apple (AAPL) 161.79; Amgen (AMGN) 250.35; United Health (UNH) 520.94; Walmart (WMT) 156.86; Travelers (TRV) 173.22; Tesla (TSLA) 1005.05,; Chipotle (CMG) 1480.85; McDonalds (MCD) 250.17; Coke (KO) 65.25, etc.
Even though we expect the DOW to decline, there are so many second and third-tier stocks that have been in bear markets for 6 months or so, that we really can’t see them going appreciably lower – no matter what happens to the DOW stocks, and they could even move up.
Joe Cotton has won three National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.
This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W. Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com
Dow down 9% from 52-wk high. NASDAQ about-20. How much lower? Haven’t most sellers left?
Did you look at Amazon (AMZN) currently 2478.62 at 3:55 PM 4/29/22 since your comment?