Allow me to share with you some crude artwork to illustrate the rough path most likely for US stock markets in the coming weeks through year end. I thought a simple cartoon might suit our needs nicely. The black lines are what have been, up to today. The blue is how this type of correction might typically unfold.
In a volatile environment perhaps a good way for many people to go (other than the #1 option, cash) is trading the indicators and indexes, a opposed to individual stocks. In that regard, I think that long-term T bonds are getting over done on the upside (R.I.P. ‘Great Rotation’).
Usually interim updates are all business, talking about changes in indicators or technical analysis or parameters. Well, this market is getting beyond the black and white and bears some discussion, from one market participant to another. So pretending that you casually asked me ‘hey pal, what do you think about the markets?’…