Next week, the 2Q earnings season begins in earnest. Equities took a big hit in the first half. The sell-side is yet to bring out scissors as relates to 2022/2023 earnings estimates. It will be even more disappointing if corporate … Continued
With a couple of tough weeks, both large- and small-caps last week suffered a slight breach of support, but not decisively just yet. Concurrently, VIX is flashing signs of fatigue. For equity bulls, if there is going to be a … Continued
On a Fed decision day, both large- and small-caps find themselves at crucial technical juncture. They have both taken a real hit the past five sessions. In the wake of last Friday’s inflation report, markets now expect a 75-basis-point hike … Continued
Most valuation metrics in US equities are stretched. This at a time when the Fed is tightening. Depending on how inflation behaves in the months and quarters ahead and how monetary policy evolves, unwinding of overbought conditions can cause pain. … Continued
Things are slowing down. From job creation to real GDP, there are signs of deceleration. CEOs are beginning to sound pessimistic. Often, this can act as a self-fulfilling prophecy. Amidst this comes the sell-side’s overly optimistic estimates for small-cap operating … Continued
Reversing weeks of downward pressure, major US stock indices had a big week last week. There is room to run, if nothing else just to unwind the oversold condition they are in. With one session to go, May is setting … Continued
The 1Q earnings season begins in earnest this week, with a host of financials getting the ball rolling. For large-caps, this year’s revision trend is flat to slightly up, but next year’s is decidedly up, which is kind of interesting … Continued
The US bond market is in the thick of interesting dynamics. The Fed plans to reduce its bloated balance sheet – meaning less demand for treasury notes and bonds – even as foreigners are buying more and the US budget … Continued
After strong rallies the past couple of weeks, major US equity indices have reached crucial levels, particularly the S&P 500, even as the Russell 2000 fails at a breakdown backtest and VIX sits at the 200-day. The S&P 500 (4543) … Continued
Investor sentiment has taken a hit, but major US equity indices are hanging in there – on a relative basis. This is a medium- to long-term worry for bulls. Near-term, they could be looking for opportunities. Possible catalysts include Thursday’s … Continued