Market Briefing For Wednesday, Nov. 21
Persistent probing postponed - panicky peddling pressures preceding what should be a capitulation. Every rebound postpones that reckoning.
So long as they keep buying weakness and talking of FANG (and others) 'as if' there were any important low, it reduces the odds of there being such lows aside perhaps seasonal rebounds (barring a China deal).
Goldman Sachs turned negative on the market at the opening Tuesday; a factor that combined with margin calls from the previous day to weigh on the market heavily in the early going.
|
This remains a market desperately trying to engineer a secondary test of the late October S&P lows; concurrently with out forecast interim low related to the mutual fund fiscal year-ends (for most).
For now we do not envision a sustainable rally; everything discussed over the weekend at great length (long video with monthly charts too) and last night remain valid with respect to an overview. This is not so much about the Fed as it is about efforts to reverse domestic reforms; and of course 'trade'.
If we awake to a China deal (somehow cobbled before the G20 Meeting) of course you get a rally. But rallies or not; realize where this market is for the segments that didn't start correcting until our Oct. 3rd 'crash alert' right at the historic high closes for the S&P and DJIA.
Wednesday, ahead of the Holiday, can be 'iffy' (and subject to wide swings with volume even missing given light attendance); but can be defensive as well. There remains more interest in selling-rallies (by those who didn't far earlier this year) than buying dips; and that's why you get short-covering squalls, but nothing sustainable, without some catalyst to motivate that.
|
Comments
