Great to have Scott O'Neil on the 1 year anniversary of the podcast. He's been a great mentor to me and this episode is a taste of the lessons we learned from him everyday @marketsmith. This is part 1 and we focused on corrections.
#Stocks continued their drop after new restrictions were announced to slow #coronavirus. @WScottOneil joins the podcast this week to talk about how investors can keep calm in the current markets. Sponsored by @MarketSmith.
Watch the full episode here: https://t.co/kUSWvrrUN1
We are getting a bounce from a short term oversold condition, but if the market is truly under distribution, a one or two day bounce will fail abruptly and the indexes will make new lows.
The market's technical condition weakened yesterday as the major indexes broke below short-term support. Volume was lighter than the previous session on both exchanges, avoiding additional distribution. However, the weakness beneath the indexes was more pronounced. The expanding weakness is important because it suggests the pressure is no longer confined to narrow areas of the market.
Pockets of strength included: Energy up 1.5% the strongest major sector over the past five sessions, advancing 2.6%. Oil & Gas groups continue to populate the leadership ranks, along with Coal. Software remains a notable source of relative strength, but also felt pressure, while Farm Machinery, Agricultural Chemicals and Agricultural Operations are emerging as areas worth monitoring. We bought $DE on Monday and shorted $IWM.
The message here is not that the bull market is necessarily over. It's that risk has increased and the market now needs to prove itself. For now, selectivity is paramount. Focus on high-quality stocks emerging from sound bases, while reducing exposure to laggards violating key support. This is not an environment to force trades or rationalize poor action.
Tactically, this is the time to cut laggards, trim extended winners and hedge where appropriate—not wait until the evidence becomes obvious to everyone . Until we see signs of repair, capital preservation takes priority. Let the market earn your exposure.
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Market concentration in U.S. stocks has revived investors' interest in equal-weight ETF approaches. Invesco has leaned into that demand while expanding access to currencies, international exposure and alternatives.
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🚨 BIG BREAKING :
⚡An interim trade deal between the US & India may offer only a limited tariff cut for Indian goods without relief on auto, steel, aluminium duties.
The mini trade deal is likely to exclude sector-specific tariff cuts - NDTV
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🎯 Short Video : https://t.co/O4Si4FbArX…
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🚨 BIG BREAKING :
⚡India's Steel Minister sees minor impact from Trump’s U.S. steel tariff hike, citing low export volumes. But metal stocks dip as broader trade worries grow.
🚨 BIG BREAKING :
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🚨 BIG BREAKING :
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