When Treasury Yields Stop Declining, The "Buy Every Dip" Strategy Doesn't Work Very Well.
Last week, we got signs that the trend for Treasury yields has reversed (higher).....Thus, it's no surprise that other signs are pointing to an imminent change in trend for the stock market (lower).
Table of Contents:
1) It won’t take much downside follow-through to clobber the stock market.
2) The cracks in the high yield market are not huge, but they are getting bigger.
3) When markets get extremely overvalued, they don’t need deep recessions to create long bear markets.
4) Updated charts on the S&P 500 and NDX Nasdaq 100. (Watch out if they don’t bounce very soon.)
5) Lots of different charts are on the cusp of sending up some meaningful warning flags.
6) Several big cap tech stocks are quite close to important long-term support levels.
7) Crude oil is close to an upside breakout. That will be bullish for the energy stocks.
8) Some ridiculous moves in several stocks show that this market is an unhealthy one.
9) Stocks of innovative companies don’t rally as fast & far without excess liquidity.
10) Summary of our current stance.