Daring Lu OP : The surge in SQQQ, the ProShares UltraPro Short QQQ ETF, could be attributed to increased market volatility or a decline in the Nasdaq-100 index, as SQQQ is designed to move inversely to the index. Recent news highlights significant inflows into the ETF, with around $279.2 million added, marking a 14.1% week-over-week increase in shares outstanding. This suggests heightened investor interest, possibly due to bearish sentiment in the tech-heavy Nasdaq-100.

Daring Lu OP : Are we hiting the roof tonight?
$40 isn't too much. It is $8 before the  5 to 1 merge.

Daring Lu OP : I am holding TQQQ since this morning. Missed the SQQQ rally as trapped by YINN.

Daring Lu OP : weaker NFP.
Next week, Trump will push for rate cut.

Daring Lu OP Daring Lu OP : Next week, PPI and CPI will be released on Thursday and Friday.
Next FOMC is March 18–19, 2025.
March is a very happening month. SQQQ also declaring dividend soon.

Daring Lu OP : U never knows...
South Korea, China, Japan... have serious influenza issues.
US commercial properties foreclosure...banking system collapse... credit card defaulting...
After Valentine Day ,  will SQQQ really soar?
marketwatch.com...

Daring Lu OP : The stock market in 2022 experienced a tumultuous year, marked by significant volatility, widespread declines, and various challenges. Here’s a summary of key events that influenced the market in 2022:
1. Global Inflation Surge
Cause: Inflation rates soared globally, with the U.S. and many other countries seeing multi-decade high levels of inflation. This was driven by various factors, including supply chain disruptions, the war in Ukraine, and the lingering effects of the COVID-19 pandemic.
Effect on Stocks: Rising inflation eroded purchasing power and increased costs for consumers and businesses. Investors feared that high inflation would prompt central banks to raise interest rates aggressively, which would dampen economic growth.
2. Federal Reserve’s Aggressive Rate Hikes
Cause: To combat soaring inflation, the U.S. Federal Reserve began raising interest rates significantly in 2022, marking its most aggressive policy tightening since the 1980s.
Effect on Stocks: Higher interest rates lead to more expensive borrowing, which slows down consumer spending and business investment. This negatively impacted growth stocks, particularly in the tech sector. The S&P 500, Nasdaq-100, and other indices all experienced large declines due to these rate hikes.
3. Bear Market
Cause: The combination of inflation fears, interest rate hikes, and economic uncertainty pushed the major U.S. stock indices into a bear market (a decline of 20% or more from their recent highs).
Effect on Stocks: By mid-2022, the S&P 500 had fallen into bear market territory. The Nasdaq-100, heavily weighted in tech stocks, suffered even more significant losses. This was particularly painful for growth stocks, as higher rates disproportionately affect their future earnings potential.
4. War in Ukraine
Cause: The Russian invasion of Ukraine in February 2022 created significant geopolitical and economic uncertainty. The war disrupted global energy supplies, especially natural gas and oil, contributing to higher commodity prices.
Effect on Stocks: Energy stocks generally performed better, but the war added to global inflationary pressures, creating further concerns about the global economy. European markets were particularly vulnerable, given their reliance on Russian energy supplies.
5. Tech Sector Slump
Cause: Many technology companies that had boomed during the COVID-19 pandemic saw their stock prices fall sharply in 2022. The rise in interest rates, which hurts the valuations of high-growth tech stocks, coupled with slowing demand, weighed heavily on companies in the sector.
Effect on Stocks: Large tech companies like Meta (formerly Facebook), Amazon, and Netflix experienced steep declines. The Nasdaq-100, with its tech-heavy composition, bore the brunt of the selloff.
6. Crypto Market Collapse
Cause: Cryptocurrencies, which had seen explosive growth in 2021, also faced a significant downturn in 2022. The global risk-off sentiment, coupled with concerns about the regulation of digital assets and the crash of major crypto firms (like FTX), contributed to the crypto market’s massive decline.
Effect on Stocks: While the crypto market is not directly tied to traditional stock markets, many stocks of companies involved in the crypto space (like Coinbase) suffered due to the broader downturn.
7. Recession Fears
Cause: The combination of rising interest rates, inflation, and global supply chain challenges led many investors and economists to fear that the world could be heading toward a recession.
Effect on Stocks: Concerns about an impending recession further dampened investor sentiment, especially as corporate earnings growth started to show signs of slowing down in the latter half of 2022.
8. Sector Performance
Winners:
Energy: The energy sector was one of the few to post strong gains in 2022, benefiting from high oil and gas prices due to the Ukraine war and global supply constraints.
Utilities: Defensive sectors like utilities generally performed better as investors sought safety in stable, dividend-paying companies.
Losers:
Technology: As mentioned earlier, tech stocks were hit hardest due to the impact of rising interest rates and slowing growth expectations.
Consumer Discretionary: Retailers and consumer discretionary companies also struggled as inflation squeezed consumer spending.
9. Stock Market Index Performance
S&P 500: The S&P 500 ended the year with a decline of about -18.1%, marking its worst performance since the global financial crisis of 2008.
Nasdaq-100: The tech-heavy Nasdaq-100 was hit particularly hard, dropping by around -33% for the year.
Dow Jones Industrial Average: The Dow saw a more moderate decline of around -8.8%.
Global Markets: Many global markets also faced significant losses due to inflation, rate hikes, and geopolitical tensions, though some, like those in emerging markets, performed better than others.
10. Investor Sentiment
Volatility: Throughout the year, stock markets were highly volatile, with frequent large swings in either direction. Investor sentiment was often driven by economic data, corporate earnings reports, and updates on the Fed’s policy stance.
Bearish Outlook: For much of 2022, investors were cautious, with many fearing a prolonged economic slowdown, continued inflation, and the possibility of a recession.
In Summary:
The year 2022 was challenging for stock markets, as global inflation, aggressive interest rate hikes, the war in Ukraine, and recession fears created a difficult environment for investors. Most major indices posted significant losses, particularly growth stocks in the tech sector. While there were pockets of strength in energy and defensive sectors, the overall sentiment was one of caution, and many investors were left uncertain about the economic outlook for 2023.
This made 2022 one of the most difficult years for stocks in recent memory, especially following the extraordinary market gains during the pandemic recovery in 2021.