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Broad-based downside participation after S&P 500 dropped to a new low!

February 27th 2022  |

Key Takeaways

  • No fundamental reason to change our cautious strategic outlook
  • Latest bounce still looks quite corrective in its nature
  • Stay on the sideline since the current risk-/reward ratio looks too low to justify any kind of bargain hunt at the moment

Market Review |

After dropping to new lows, major indexes strongly bounced at the end of the week. In the end, U.S. stocks finished a volatile week with a mixed performance. For the week, the Dow Jones Industrial Average lost 0.1% to close at 34,058.7. The blue-chip index posted its third-straight losing week despite the two-day surge, however. The S&P 500 advanced 0.8% in the same time period to finish at 4,384.65. The Nasdaq increased 1.1% to close at 13,694.62. Most key S&P sectors finished higher, led by health care. The discretionary sector dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower, near 27.6.

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Final washout or more pain ahead?

February 20th 2022 |

Key Takeaways

  • No fundamental reason to change our cautious strategic outlook
  • Stay on the sideline since the current risk-/reward ratio looks too low to justify any kind of bargain hunt at the moment
  • On a very short-time frame, the chances for an oversold but corrective bounce are accumulating

Market Review |

U.S. stocks finished the week with strong losses. The Dow Jones Industrial Average declined 1.9% over the week to 34,079.18, whereas it faced its worst trading day in 2022 on Thursday. The S&P 500 recorded a weekly loss of 1.6% to finish at 4,348.87. The Nasdaq lost 1.8% for the week to end at 13,548.07. Most key S&P sectors ended in negative territory for the week, led by energy. The staples sector was the only gainer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.8.

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Bounce successfully turned out to be corrective!

February 13th 2022  |

Key Takeaways

  • The trend remains bearish and there is no fundamental reason to change our cautious outlook
  • Further selling pressure towards or even below the previous low at 4,326 looks quite likely
  • Stay on the sideline since the current risk-/reward ratio looks too low to justify any kind of bargain hunt at the moment

Market Review |

U.S. stocks finished the week with losses. The Dow Jones Industrial Average lost 1.0% over the week to 34,738.06. The S&P 500 suffered a weekly loss of 1.8% to close at 4,418.64. The Nasdaq dropped 2.2% for the week to end at 13,791.15. Among the key S&P sectors, energy was the best weekly performer, while the technology sector dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.4.

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Expected bounce looks quite corrective in its nature!

February 6th 2022  |

Market Review |

All three major U.S. averages finished the week with gains. For the week, the Dow Jones Industrial Average ended the week up 1.1% finishing at 35,089.74. The S&P 500 closed at 4,500.53 and booked a weekly gain of 1.5%. Closing at 14,098.01, the tech-heavy Nasdaq gained 2.4% this week. Energy led gainers among the S&P’s 10 major sectors; real estate and comm. services were the only negative sectors for the week. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 23.2.

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