Market trends are a good example, showing that the biggest rebounds often occur in the worst markets.

These big rebounds almost always happen after some of the most terrible actions, but unfortunately, they do not always indicate that the worst is over. We have recently had a series of fluctuations of more than 1%, and as the correction progresses, they tend to move in both directions. A rebound can help relieve some of the pressure accumulated after the relentless sell-off, but it takes more than a big rebound to form the bottom of the market.

I looked at hundreds of charts this afternoon, and many of them looked the same: increased volatility, sharp decline, broken support, and then the green bar chart on Monday. This is not a bullish pattern. It may eventually develop into a good chart, but it requires more time and more productive action.

Bounces like this are often called dead cat bounces because they don't come back to life and continue to run. The cat is still dead. However, in recent years, the development trend of "V" shaped rebound has become stronger. Instead of retesting the lows, buyers continued to pour in and push the stock directly back up. This is not what most technicians expect, but considering the frequency with which this has occurred in recent years, we cannot completely rule out this possibility.

The more traditional view is that a rebound like ours is a good starting point. There should be another round of selling and retesting the lows. Eventually, the following day will mark the bottom, but this is a process.

Monday's trend is a good start to a potential bottoming out for many stocks, but it is too early to say everything is clear. Although it is gratifying to see some considerable gains, the background in which it happened does generate a lot of optimism. I think it sounds more positive, but all that was done on Monday was the reduction in oversold readings.

good evening. See you tomorrow.

At the time of publication, DePorre did not hold any positions in the securities mentioned.

Investors now have information they can handle, which allows them to price the less dovish possibilities of the Fed.

Talking about inflation as "temporary" has settled down.

I will avoid the long side of WGO now.

There will be a temptation to bail small companies with poor performance, bear tax losses, and enter larger companies.

It is expected that ETF investors will increase bullish sentiment and capital inflows near the peak.

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