The market has experienced a significant pullback, leading to increased volatility and a cautious tone. Forced selling, not fear, drives market bottoms. Liquidity-driven selling has pushed prices away from business reality. Earnings season is approaching, which will create liquidity events and opportunities for strong capital to step in. Refinancing windows and catalyst events like spinoffs can lead to forced selling and structural alpha. Watch for signs of exhaustion in volume and relative strength to identify when forced selling may end and prices may revert to business reality.

Read more at Barchart: Markets Don’t Bottom On Fear. They Bottom When Forced Sellers Are Done