Nice daily video by Maverick as always: The Stock Market Bottom Is Here! 🤣 - YouTube
I’m gonna summarize his PoV at about 20:30 on what to look for to reliably determine a ‘bottom’. Maverick suggests watching for these 5 indicators:
- A cooling down of the 10 year yield.
- Yield curve inversions have to stop steepening, and at least pause if not reverse.
- USD needs to go down, e.g. DXY.
- More participation in investors/traders buying call options, signifying more conviction in the stock market.
- Inflation peaking + fed rate hike pause. Some argue that we have seen signs of this already, i.e. recent commodities pricing and recent inflation data.
In my personal noobie opinion, I think #5 is the most important for market sentiment.
& in the short term, all eyes should be on earnings and guidance for the possible ‘next leg down’ or perhaps a bear market rally caused by shorts covering/booking profits if earnings are strong.