Everything looks negative, especially growth stocks.
If we look at the long term NDX/SPX ratio compared to the 10Y Yields, we can see that since the 10Y yields are much higher than three years ago, the NDX/SPY ratio should fall back further down to reach at least the Yellow support level. The Figure below tells that if rates stay high, the $NDX will fall further compared to the $SPX. Hence, 2023 could be ugly at least for the first three months.
The Yield comparison tells us that upside is limited to $3900 here, which is basically the 50MA on the $SPX
Attachment 57052
Conclusions:
Funds are adjusting their portfolio for now.
Nothing indicates that markets will bounce today/tomorrow, but they might experience some EOY buying
Below are some long/short trade ideas.
I took a long speculative KPTI position two days ago. KPTI is a biotech company that raised money a few weeks ago at $5. The price is now 2.6$ and I believe that it might easily move back up in January. Anyway, heavy buying occuring here.
