Welcome to this week’s State of the Markets with Wayne Nelson and Seth Golden. Please click the following link to review this week’s SOTM. In this week’s episode, we deconstruct the January Barometer, look into just how expensive the market has become (maybe) and continue to validate where investors can find the greatest returns for their investing capital! “An investor without…...
Correction has arrived, positioning and leverage should do the rest. A combination of peaking rate of change in M1/M2and aggressive short squeezes has led to a significant degrossing by hedge funds. Markets corrected 3-5% with many of our favored trades taking a much needed and expected hit. This is normal in an exuberant bull market…...
The ~3% drawdown in the S&P 500 this week took many by surprise. A key feature of this likely short-lived technical tumble was the accompanying small cap short squeeze, most likely initiated by retail investors whose increased activity has become more interesting lately (see more details below). Although the recent technical selloff and short squeeze…...
The S&P 500 (SPX) did exact what everyone expected it to do this past trading week. If you believe that everyone had the same expectations and the expectations were exactly executed in price action, I have a bridge to sell you! The reality is that the best expectations are satisfied by considering the long-term trend…...
Welcome to this week’s State of the Markets with Wayne Nelson and Seth Golden. Please click the following link to review this week’s SOTM. In this week’s episode, we review the decline that was October and the potential market returns for November and beyond. The market has responded to the election with a robustness of breadth and has moved to focus…...
A question facing most investors today is the outlook for equities, and more broadly market risk. This ties into the outlook for the COVID-19 recovery, inflation and various technical parameters (such as flows, positioning, volatility and bond-equity correlation). Recently, we have seen a number of strategists calling for a market correction or indicating equities are…...
Does the Rotation Need a Vacation? The new leadership in small caps, cyclical stocks and commodities is well established at this point and definitive in its messaging, in our view – i.e.,economic growth and inflation is likely to surprise on the upside. However, rates remain in “disbelief”and something has to give with equity markets having…...
Finom Group’s official weekly Research Report will begin a new cycle (3 weeks on, 1 week off) on January 31, 2021. In the mean time, here are varied thoughts and analysis on a wide range of subject matter impacting the economy and financial markets from analysts and strategists. Enjoy your weekend and if you have…...
With ten trading sessions of the New Year complete, January and 2021 are off to a modest start. The Covid19 vaccine rollout has proven more difficult than previously forecast by governments, economists and the like. The economy has, by many measures, found a soft patch in economic activities. Lastly, but certainly not least and shy…...
Last Monday, in our January Chartbook, we suggested that the Georgia runoff could be a wildcard for the potential resumption of Value rotation. This would largely end the digestion of the big November Value spike that was taking place over the past 4-5 weeks. We are not fully out of the woods yet, as the…...
