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Market snapshot. Source: Bloomberg.



Last week, we discussed the increasing odds of a 10 percent correction in U.S. equity markets. At the end of the week, markets had a 90/90 downside day, something that has technical significance if you are inclined in that direction. The expectations that follow a 90/90 day are for a bounce and a further retreat.

Given the deep red state of futures this morning, things seem to be playing out according to that probability.

But before panic sets in, let me throw a series of random ideas at you that might be worth considering before going home for the weekend . . .


Continues here



Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Look Out Below, Post-Bounce Random Edition”

  1. Concerned Neighbour says:

    BR, you forgot that worse than expected earnings/revenues, earnings warnings, and declining disposable income are positive for “markets”.

    As I’ve said before, we will know the “short-term” market manipulation is over and done with when bad news starts being reflected in asset prices. I see no evidence this is happening.

  2. 4whatitsworth says:

    I ejected on my initial Emerging Markets positions as you say “don’t be afraid to take a loss”. I believe that Technology is in a type of golden age like the automotive industry in the 50′s so I think those valuations are justified. As far as the rest of the market goes I am not sure what do do with cash in a rising interest rate environment. There is a theory that the yield on the 10year should match GDP so I think I am going to be very cautious until this matches up.