Perfect words, those title words. You know the drill; click headline, get article.
Yesterday we noted that the US headline indexes were simply using the media’s play-by-play as an excuse to fill the most recent gaps, put there by whatever happy stuff drove casino patrons last week.
“Until today, the market has been nonplused by the comings and goings of the comments and reports but I think this [situation] resembles May more than in it resembles December,” Art Hogan, chief strategist at National Securities told MarketWatch, referring to the worst trading day on the trading day before Christmas in history back in 2018 and a tweet-driven tanking that occurred six months later.
Good old Art Hogan. I remember him as the media mouthpiece guy (along with the father of TA, Ralph Acampora) from a couple decades ago, when I used to watch financial TeeVee. So Art reassures us that this is like May, not last December when the machines tanked the market on Christmas Eve. The momentum indicators have come to (and begun to back off from) levels that have tended to precede corrections, so we’ll see.
But if a manic phase is in play right now – and it has been, it’s just a matter of its intensity and duration – a twitch like this, driven by the news cycle, could be a jittery pause to refresh the brutally over-bullish sentiment situation.
There is risk aplenty in the market but the headline at the top of this post is not a reason to fear it. Unlike some headlines, it does appear at a relatively opportune time, with the market’s sentiment and momo indicators stretched. Usually the best bearish headlines appear like, you know, on Christmas Eve 2018.
Bottom line is that it and has been a risky market. It also is and has been a firmly bull trending market. Too boot, it’s also getting rid of last week’s gaps. The rest is noise.
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