The Stock Market Is About To Wake Up To Realities Of Today's Economy
After an extremely calm an uneventful two weeks for the stock market, the realities of the slowing economy (and the lower earnings that will go with it) are going to create serious headwinds for investors.
Table of Contents:
1) Sell in May and go away?...Not if the “Fed put” back. (We don’t think it is…at least not for long.)
2) We’re getting more indications that a recession is just around the corner. (Even copper is looking dicey.)
3) Lots of tech earnings next week, so let’s look at the charts of XLK, SMH, MSFT, NVDA, GOOGL and AMZN!
4) You don’t need a disastrous earnings season to push the stock market lower when the market is extremely expensive!
5) A picture is worth a thousand words. (Does that mean two pictures is worth two thousand words?)
6) Updated charts on the S&P 500 Index and the NDX Nasdaq 100 Index.
7) Update on the chart of the U.S. 10yr note yield. (H&S pattern forming.)
8) We do not like the action in the bank stocks…and they’re still sitting on BIG losses in their bond portfolios.
9) The housing stocks are getting very overbought. Don’t chase them at these levels.
10) Summary of our current stance. (There’s still more pain to come with the end of “free money.”)