A quick Finom Group housekeeping note: Due to travel engagements this coming weekend, we will be foregoing our weekly Research Report this weekend and be back on schedule in the following week. Our usual SOTM video will be due out Thursday evening! Does it seem like “forever ago” that we were looking ahead to 2020…
It was the worst day for the market since 2008 and a day that wiped out the gains from the last 12 months. Keep that in mind… the last 12 months. When you see that number it should be understood that much of the historic data that positions an occurrence in the market, followed by…
“A collapse in stock markets, co-ordinated policy statements and emergency interest rate cuts: the events of the past week have inevitably led to comparisons to October 2008. But the differences are as significant as the similarities. To understand why it’s helpful to think about the underlying economic forces that are at play. The crisis of…
By Alexander Osipovich March 5, 2020 6:00 am ET Trading conditions have sharply deteriorated in a popular vehicle for betting on swings in the S&P 500, exacerbating the volatility in the stock market in the past two weeks. E-mini S&P 500 futures play a huge, if little understood, role in financial markets, with hundreds of…
After investor optimism that supported the largest 1-Day rise in the Dow Jones Industrial Average (DJIA) on Monday and with all major averages rallying sharply, “turn around Tuesday” took on a new form. While the major averages didn’t lose everything they recaptured on Monday, they were all lower by nearly 3% in the trading session.…
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…
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…
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…
