US Financial Market ‘Flushing’ Out Excesses Ahead of Santa Claus Rally
$SPY, $QQQ, $VXX
- Investor Fear Can Only Mean Stocks Will Surge Even Higher
- The CBOE Volatility Index spiked to 25.57, its highest mark since February.
- Byron Wien predicts that the stock market will rally after the midterm elections
- The next recession is 3 or more years out 2021
The 2-day pull back in US stocks is a buying opportunity for savvy investors, Byron Wien says. “I think we had to knock some of the complacency out of the market. God knows we are doing that right now,” he said in a TV interview Thursday.
Mr. Wien, Vice Chairman of Blackstone (NYSE:BX), said, “I think this is a correction in an ongoing Bull market.”
For individual investors, the road to get past the midterms may be filled with concerns about sudden volatility.
US stocks sank to the lowest marks of the day late Thursday afternoon and headed for a 6th consecutive decliner, extending the longest losing streak of Donald Trump’s Presidency as insurers and energy companies tanked in the wake of Hurricane Michael, and an earlier rally in tech faded.
- WTI Crude Oil -3.0% to 70.98 bbl
- Gold +2.9% at 1227.60 oz
- US Dollar (.DXY) Index -0.5% to 95.07
All major equity benchmarks were down more than 1% on the day.
The S&P 500 is off about 6.5% in the past 6 sessions.
The NAS Comp is off 4.4% in the frame.
Trading was heavy with volume up 55% above average over the last 20 market days.
Commentary: This is a normal Bull market pull back that is concentrated in some of the more expensive and most notable names in technology, it has happened because of the uncertainty about global growth and the feeling that Fed’s monetary is going too far too fast.
We wait to see and act accordingly.
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