Bottoming is a Process

btw, focus on the stocks! Whatever set ups!

The 2011 correction is another precedent to look to for guidance as to what we might potentially expect going forward. I think in both cases – 2011 and 1998 – the key point illustrated is that carving out a reliable bottom was a process.

Today there’s selling in areas that have been leading and buying in the areas that have gotten smashed. This is to be expected. Sentiment is bearish while a ton of names are down 40-80%. In 1998, the NASDAQ rallied 20% from an oversold condition before the final leg down.

If you look at some past precedent bottoms like 1998, 2011, 2015 and 2018, you will notice they all staged snap back rallies before either backing and filling and more time consolidating, or they rallied and then went on to make a lower low. Commonality: bottoming was a process. https://t.co/gJcqjpwTXf

— Mark Minervini (@markminervini) February 1, 2022