Good morning,
Today starts off with the markets finding themselves in day number twenty seven in the selling stampede. Buy historical standards we should be coming to a close in the stampede. However, some have been known to last longer. Remember, it takes three consecutive closing up days to declare a selling stampede over. Mr. Jeffery Saut of Raymond James states that selling stampede usually last from 17 to 25 days with some lasting longer. With this, perhaps the stampede will soon be ending.
In checking the futures in the S&P 500 Index, as I write, indicate that the markets will open down this morning. Should I anticapate that we will reach a closing low of around 1820 range, within the next few days, I plan to buy again. Thus far I have bought at 1922 and 1880 in this downdraft. Currently, the Index is down about 8% year-to-date and off it's 52 week high just short of 12%. This puts us into correction terrirory. I was hoping good to fair corporate earnings would lift the markets. Thus far, they have not and continue to follow oil which is also being reported down this morning as I write.
With the Panthers failing to win Super Bowl 50 it could now be rough times for the markets according to the Super Bowl indicator for those investors that put credence in it. Personally, I favor the hem line indicator and told my wife to start wearing her shorter dresses. From my perspective, it is the FOMC rate increase posture that has by in large put us in a tail spin. Should they continue with a rate increase(s) in our current environment that will make the dollar even stronger creating stronger headwinds for the markets.
Have a good day; and ... I wish all ... Good Investing.
