The NASDAQ 100 fell on Tuesday, as yields continue to be a major factor in this market.
With this, the markets are going to be sensitive from time to time, but the reality is that the NASDAQ 100 was overdone to begin with.
The NASDAQ 100 fell pretty precipitously early on Tuesday as interest rates in America continue to rise. This of course is because leaders of the United States and Iran continue to say random things online to rattle the markets. Although, I don't know that anything's changed and that might be part of what the market's looking at at the end of the day as we are at least trying to recover.
Interest rates in America are sky high, and they will continue to be so. There is an argument to be made that the NASDAQ just was ignoring reality. I think there's some probably good points to be made in that direction and the market has gotten so far ahead of itself it needed to pull back. I quite frankly think it needs to pull back further. 28,000 would be 1 place I'd be looking at.
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All things being equal, this is a market that you'll be looking to buy dips in, and I think it does eventually go much higher. But in the meantime, I'd be very careful here. This is a market that's gone straight up in the air for 6 weeks. Nothing can go in 1 direction forever and as a result I think sooner or later we are going to have a couple of really bad days.
Today could have been the beginning of that. We'll just have to wait and see how the bond market behaves. But if the rates continue to climb, that's just the excuse they'll need to sell it off. I will be there to pick it up. I just don't know when it is. I don't really want to get overly aggressive here. At this point you're looking at a market that's rallied about 5,500 points. To chase it here is a good way to lose money. You need to find value.
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