Retail traders are gun shy. XLF and XLP is leading the way...
Retail investor who are looking for longs are largely gun shy and sidelined after this dramatic selloff. Choppiness in indices are keeping them there. Indices have not been able to clear a resistance, but both XLF and XLP have cleared above resistance levels. I expect the broader markets to follow XLF as inflation data is released.
I expect price action to be fast next week. As retail shortsellers are bagholding positions, the squeeze on the next leg up should force them to cut their losses.
I expect price action to be fast next week. As retail shortsellers are bagholding positions, the squeeze on the next leg up should force them to cut their losses.
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