Month: September 2022

September 25th 2022 |

Key Takeaways

• Ingredients for a stronger bounce are accumulating
• Nevertheless, the quality of the current downtrend still remains quite high
• The current risk-/reward ratio still looks too low for a strategic bargain hunt

Market Review |

In line with our strategic view, the carnage continued as U.S. stocks finished a brutal week with deep losses. The Dow Jones Industrial Average slumped 4.0% over the week to 29,590.4. The blue-chip closed below 30,000 for the first time since June 17. The S&P 500 closed at 3,693.23 and posted a 4.7% weekly loss. The Nasdaq plunged 5.1% this week to end at 10,867.93. All three averages capped their fifth negative week in six. All key S&P sectors were negative for the week, led by the energy sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, increased to 29.9. Read More

September 18th 2022 |

Key Takeaways

• In line with our latest call, bounce successfully turned out to be corrective in its nature!
• No signs for a bottom visible yet, although sentiment is hitting increasingly contrarian levels.
• Stay on the sideline as the risk-/reward ratio is too low to act contrarian.

Market Review |

In line with our strategic outlook. U.S. stocks finished the week finally with deep losses. Although the (corrective) bounce continued until Tuesday, the Dow Jones Industrial Average slumped 4.1% over the week to 30,822.42. The S&P 500 retreated 4.8% for the week to finish at 3,873.33. The Nasdaq posted a 5.5% loss for the week and finished at 11,448.40. The three major averages suffered their fourth losing week in five, and it was the worst week for the S&P 500 and Nasdaq since June. Moreover, all the gains from the previous bounce were literally wiped out in a few trading days. All key S&P sectors ended in negative territory for the week, led by the materials sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, advanced to 26.2. Read More

September 11th 2022 |

Key Takeaways

• Further bouncing possible, but upside potential looks increasingly capped.
• Risk for renewed selling pressure remains high as bounce looks corrective in its nature.
• Stay on the sideline as the risk-/reward ratio still looks too low to go for a bargain hunt.

Market Review |

U.S. stocks finished the holiday-shortened week with gains. Closing at 32,151.71, the Dow Jones Industrial Average added 2.7% for the week. The S&P 500 booked a weekly gain of 3.7% and closed at 4,067.36. The Nasdaq finished at 12,112.31 and jumped 4.1% this week. All three averages snapped a three-week losing streak. All key S&P sectors finished higher, led by the discretionary sector. The CBOE Volatility index (VIX), widely considered the best gauge of fear in the market, dropped to 22.8. Read More

September 4th 2022  |

Key Takeaways

• Most positive divergence have been wiped out.
• Stay on the sideline as the risk-/reward ratio is too low to act contrarian.
• Market is quite oversold and, therefore, the chances for an oversold bounce are accumulating.

Market Review |

U.S. stocks finished the week lower. The Dow Jones Industrial Average lost 3% over the week to 31,318.44. The S&P 500 retreated 3.3% for the week to finish at 3,924.26. The Nasdaq posted a 4.2% loss for the week and finished at 11,630.86. All averages closed out their third straight week of losses. All key S&P sectors ended in negative territory for the week, led by the technology sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 25.5. Read More