The ease with which supports Friday had been broken through, that HYG wasn‘t able to defend high ground better, and that the long end of the curve hasn‘t yet stabilized, speaks for more downside this week – before the rebound off even more oversold levels happens.
The question is how deep we then have to go still.
My opinion is less than 5% from Friday‘s close, but probably somewhat below, meaning that 3,500s would be broken after all.
I‘m not raising the S&P 500 earnings per share, and the picture valuations and earnings downgrades ahead paint. Consumer is still doing relatively fine, the real economy hasn‘t dipped into a serious recession, and there are still some bright spots in earnings ahead.
The purpose of today’s market update is adjust open market positions – yes, based on the indeed weak close in stocks, I’m updating stock market position details without waiting for Monday.
Keep enjoying the lively Twitter feed serving you all already in, which comes on top of getting the key daily analytics right into your mailbox. Plenty gets addressed there, but the analyses (whether short or long format, depending on market action) over email are the bedrock, so make sure you‘re signed up for the free newsletter and that you have Twitter notifications turned on so as not to miss any tweets or replies intraday.
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All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.
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