Fear Peaks 2nd Day in a Row: Time to Buy
We saw another rally in fear, only to retreat to the lows of the day.
TL:DR Friday’s Post. The last 8/9 times fear peaked and plummeted, stocks rose in the coming weeks.
Today we got further confirmation of the price action Friday.
Fear skyrocketed this morning, then had a dramatic pullback. Notice how fear reversed outside of the upper Bollinger:
As the market action unfolds, we discover new clues as to what may happen. This is another piece of anecdotal evidence that we’re in for a rally.
Whether you think the rally is A) a bear market rally or B) the beginning of another bull market, it doesn’t matter.
There is a heavy bias to the upside from here. Especially for regional bank stocks that are far more diversified than SVB was, and actually hedged their balance sheet like a bank should.