Bear Traps
In a bear market, bulls trap are very common. Every little rally can cause excitement and create the impression that the market is reversing, even more so when the rally is a sustained one (eg the one that we had recently sustained for 1.5 months).
But time and time again, the macro factors show us that the market takes the stairs up slowly, but take the elevator / slide down swiftly - falling faster you can imagine. We have experienced it twice already.
The first time was when the market fell in Aug, and within a week or two, it gave up almost half of the gains that it has accumulated from June to Aug.
The second time was on Tuesday when CPI result came out, various indices experienced the biggest single day fall since 2020.
Check out my YouTube video if you have time:
Stock Market Outlook - Sep 2022
https://youtu.be/3YcK6XRgsWM
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