Stock Market Today: Oversold Rebound

February 24, 2022, 3:39 pm EST

Oversold Rebound

It may sound strange that the stock market reversed the loss at the opening bell and turned into a rally. Nasdaq is up more than +3% as of now with many mega techs up more than 4% (AMZN, GOOGL, MSFT, FB). Software is even stronger with PANW +12%, ADBE +9%. ZS +10%, Furthermore, the green energy stocks also rise up: ENPH, SEDG, PWR, etc. 

We consider that this is an oversold rebound after the widespread weakness in the technology sector since the beginning of 2022. We need to remember that the stock market behaves in a wave pattern. This rebound wave could take days or 1-2 weeks. Depending on the timeframes of your investment it could offer a way to change positions or reduce the loss. 

We are more interested in the defense industry like KTOS +21% where Unmanned Aerial Systems (UAE) could become the mainstream of future battlegrounds. In our opinion, warfare is going to increase globally that Russia-Ukraine simply opens up a new chapter after World Wat II.

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