It’s never advisable to short the market when it’s known that central banks are likely to respond to perceived exogenous economic shocks. Friday’s S&P 500 lows are a perfect example of such inadvisable action, with the low of the trading session and seemingly trough in recent correction at 2,855 and a close roughly 100 points…
The S&P 500 (SPX) closed a volatile, ugly week with a major correction and it’s largest since Q4 2018. The index is down 11.5% from last Friday, and down 8.56% year-to-date. It was a record setting decline/correction that unfolded and found many traders/investors abandoning equity exposure in favor of cash as the correction deepened. This…...
This article first appeared in the Wall Street Journal Updated Feb. 28, 2020 5:11 pm ET The coronavirus has sent markets tumbling, as its ramifications to a swath of businesses and industries becomes more apparent. Companies that make and sell products are struggling to secure supply lines as business disruptions ricochet far beyond China. They are…
Welcome to this week’s State of the Markets with Wayne Nelson and Seth Golden. Please click the following link to review the SOTM video. The bulls are being tested and with the fastest 10% pullback in history. All 3 major moving averages have been breached and found with great volumes in the S&P 500 over the course of the week. The…...
Falls in equity prices and bond yields so far this week reflect fears that coronavirus cases outside China will mark the start of a wider outbreak that deals a blow to the world economy. For now, we envisage a moderate hit to global GDP growth of 0.5ppts this year, due almost entirely to the impact…
Twas another rough day on Wall Street as U.S. indices fell by another 3%+ and as coronavirus fears spread. In the early morning hours, futures were pointed to a higher open for the day and Finom Group urged traders not to trust the early indications, as we’ve seen this movie play out many times before…
Monday was one of those days that test the resolve of many traders/investors. The major averages fell by roughly 3.5% or worse, with the S&P 500 (SPX) tumbling some 3.35% on the day and accelerating losses into the closing bell. Many narratives and headlines produced during the trading day highlighted market losses due to the…
This article first appeared at The Wall Street Journal ByChuin-Wei Yap and Jon EmontUpdated Feb. 23, 2020 12:22 pm ET HONG KONG—The last time a coronavirus outbreak hit China in 2003, the global economy emerged relatively unscathed. Now, nearly two decades later, the growth-damping effects of a similar pathogen threaten to ripple around a world transformed by…
This article originally appeared in the Wall Street Journal: By Betsy McKay: Updated Feb. 22, 2020 10:06 am ET Concern is high about a dangerous new coronavirus behind an epidemic in China and illnesses in 26 other countries. The number of people sick with or dying of a viral pneumonia caused by the virus is…
If you were asked to do nothing as an investor for the week to come, could you do it? Sometimes the simplest and most appropriate measure to take is the most difficult for investors and traders alike. We think this is an appropriate manner in which to contextualize markets near-term and with respect to growing…...
