The major indices are still near their ATHs and many large caps + mega caps haven't cracked yet.
This suggests that the liquidation isn't over.
Bear-market rallies might take place in the high growth names but for most names, the primary trend is currently down.
This suggests that the liquidation isn't over.
Bear-market rallies might take place in the high growth names but for most names, the primary trend is currently down.
Over the following weeks, the contraction is likely to get worse and the stronger US Dollar should cause commodities/inflation to roll over.
Global PMIs also likely to roll over and this will cause an economic slowdown.
Sell-off only likely to end when the Fed becomes dovish.
Global PMIs also likely to roll over and this will cause an economic slowdown.
Sell-off only likely to end when the Fed becomes dovish.
This sell off is not unexpected, neither is it a 'black swan' event.
The ongoing selling is a rational response to tightening monetary conditions.
The Fed's QE unleashed animal spirits and pushed prices/valuations to an extreme and the market is now discounting its end.
The ongoing selling is a rational response to tightening monetary conditions.
The Fed's QE unleashed animal spirits and pushed prices/valuations to an extreme and the market is now discounting its end.
The market has been giving clues for weeks.
One by one, stocks have been getting shot and even several bellwether companies have not participated in this rally in the indices. Several indices didn't even confirm the recent high in $NDX
This is not normal and suggests weakness.
One by one, stocks have been getting shot and even several bellwether companies have not participated in this rally in the indices. Several indices didn't even confirm the recent high in $NDX
This is not normal and suggests weakness.
Many on FinTwit calling this a 'normal pullback'.
A normal pullback does not cause stocks to go down 50-70% from their ATHs and drop 10% in a day!
This is the unwind of the QE bubble - so far, the most speculative names and high growth stocks have been hit, indices to follow.
A normal pullback does not cause stocks to go down 50-70% from their ATHs and drop 10% in a day!
This is the unwind of the QE bubble - so far, the most speculative names and high growth stocks have been hit, indices to follow.
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