The Stock Market Has Not Priced-in a Recession Yet
This week, we highlight how the stock market has not yet met two conditions that have been met at every bottom of a bear markets since WWII. Therefore, although the market will see sharp short-term bounces from time to time, the stock market will likely see lower-lows...and thus investors need act accordingly. (You can see the rest of the topics we cover in the Table of Contents.)
Table of Contents:
1) Nothing changed on Thursday’s big bounce in the stock market.
2) Too many investors are playing the blame game…and not enough are preparing for the coming recession.
3) Update on the charts for the S&P 500, NDX Nasdaq 100, and the Russell 2000.
4) The stress indicators in the system are not at extremes, but they’re not good either!
5) WTI has been testing a key resistance level, so any upside follow-through will be bullish.
6) No surprise, the charts on the KBE bank ETF & the yield curve are very similar.
7) The European bank stock index is flirting with a VERY important support level.
8) The housing stocks are cheap, but the chart on the ITB housing ETF looks dicey.
9) Fridays have been very bad days for the stock market recently.
10) Politics….The election of Sec. of State…for individual states…has never been more important.
11) Summary of our current stance.