Trading so far in 2022 has been extremely tough. And that's obvious. Many investors were looking for the worst-performing stocks from 2021 to find some buying support, but that has not happened.
What has happened is even more selling pressure. Two notable examples are the ARK Innovation fund (ARKK) , which is struggling to hold its lowest point since July 2020. The other example is the SPDR S&P Biotech ETF (XBI) , which is currently trading at the levels it hit in June 2000.
There are many other examples of this relentless selling pressure. Out of 5,128 stocks that are priced over $5 and trade over 50,000 shares on average, 27% are within 10% of their 12-month lows. That is a bear market, but it is not recognized by the folks in the business media because they are only looking at the major indexes.
I've been telling this story for a while now, and there are still no signs yet of a shift. The market was just hit with another sell program that drove it to the day's lows, but breadth isn't that bad, with around 3,400 gainers to 4,700 decliners.
The best advice I can give in this market is to embrace that this is a very poor environment and we don't know when it will shift. It is necessary to cultivate patience and make sure you have plenty of capital to put to work when conditions do you improve.
When will things get better? I have no idea, but when it does happen, it will occur abruptly and make you wonder why the action was so terrible for so long.