Do Bear Markets end in Capitulation?

Submitted by The_Magnificent_007 t3_10013dm in wallstreetbets

I have come across the idea that Bear markets end in capitulation! If so, we are still way up than we thought!

No one argues whether we are in a solid Bear market, however, the debate is all about whether the bottom is in?

The markets have not seen any real capitulation so far, this is a very ominous sign!! This means one thing: The real train-wreck is on its way.

Perhaps 2023 is going to be as grim and gloomy as most traders predict it to be .. painful that may be.. but at least we get to see the bottom we are all anxiously waiting for...

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VisualMod t1_j2esxyq wrote

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VisualMod t1_j2esyl0 wrote

>I agree that we are in a bear market, but I don't think capitulation has occurred yet. The markets could still go lower from here and it would be wise to be prepared for more downside.

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Fuhnancial t1_j2evemi wrote

I have never been anxious to see any bottomsimg

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mixmix83 t1_j2exgfq wrote

Sometimes yes, sometimes no. In April 2020 I remember hearing the opinion that the market hadn’t bottomed because there was no obvious capitulation. You can’t time the bottom or the top but I think you can pay attention to signs that the market may be cheap or expensive.

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johnnyA99 t1_j2f2n1i wrote

Capitulation that forces the Fed into an emergency rate-cutting meeting

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justJimBob316 t1_j2fe967 wrote

Yes, market-wide TSLA like capitulation ought to do it.

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Emotional_Skin_8342 t1_j2fon92 wrote

Replying to mixmix83 (#1,241,181)

I think you can call it capitulation (loosely, from the Latin, “surrendering your head,”) when the S&P 500 gives up 5% in a single trading day. Until then, look for obvious value and yield in issues like PXD, DVN, etc., and leave unprofitable “growth” stocks alone.

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