“If you ask me about the Russell and the
Nasdaq Composite and the S&P MidCap, I think you’re talking
about 20, 25 percent. And I call it a stealth bear market going on.”
S&P
500, Dow near session lows; Russell 2000 in correction territory
First off,
we had hedge-fund starDavid
Tepper coming out with a less than enthusiastic show of support for
the U.S. stock market.
Here’s what he said, according to a report
filed from the hedge-fund gabfest in Las Vegas:
“We’ll probably be okay,” but it’s time
to be nervous, says Tepper. Asked if there are any plays he likes
right now, he answered with a curt “no.”
So what to do?
“I’m not saying go short, just don’t be
too freakin’ long,” he said.
….
Russell 2000 index is officially in correction
territory. It’s down 10.3% from the peak reached on March 4.
…
Timothy Leach, chief investment officer at the
U.S. Bank Wealth Management Group says that markets were handed a
reality check today when economic data from Europe came in very weak.
“When you have Germany’s Bundesbank saying
they are open to underwrite stimulus, you know things are worrying.
In the U.S. the tapering of the Fed stimulus
will finish by this fall, while the economy is growing at a lot
slower pace than was forecast. This has been weighing on markets as
we have in sideline trading.”
US
output slides at fastest rate in nearly 2 years
U.S. industrial output
fell at its fastest rate in more than 1-1/2 years in April as
factory production slumped, tempering hopes for a big jump in
economicgrowth after a winter slowdown.
Bond
market now showing signs of fear, panic buying
Commentary: There may be movement
in stocks investors are not anticipating, writes Michael Gayed.
For now, our ATAC models used for managing our
absolute-return and equity-sector-rotation mutual funds and separate
accounts remain in expansion mode, but the weekly nature of our
approach could result in another very aggressive position into
defensive stance.
This
took place in 2000 & 2007…happening again? Defensive time???
CLICK
ON CHART TO ENLARGE
Defensive stocks started to reflect relative
strength to Discretionary stocks back in 2000 & 2007 and when
they did, the S&P 500 ended up falling in price.
Is a “defensive” breakout taking place in
the lower right corner above? Nothing proven at this time… for sure
has my attention !!!
-
Homebuilder Confidence Unexpectedly Falls
The NAHB housing market index (HMI), a gauge of
homebuilder sentiment, fell to 45 in May.
This missed expectations for a rise to 49. A
reading over 50 shows that more builders view conditions as good than
poor.
Wal-Mart Blows Quarter, Blames Weather
Huge
Break Or A Full-Blown Stock Market Crash Is Coming
Fleckenstein: “No
one has ever seen these sort of financial policies that the world is
pursuing. We’ve never had the world’s central bank engaged in a
massive QE operation and later been dialing it back, followed by what
the Bank of Japan is doing, the Swiss National Bank, the Brits, and
all of that….
“So you can’t necessarily look at things
and say, ‘Well, this has to happen,’ because if you said that you
would say, ‘Well, there is no way stocks could stay up with the Fed
backing off from QE,’ but they have so far. Bonds — the same.
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