Hoot of the Day
My hoot of the day is a bonus double play from the same person.
Charles Payne says The Market is Oversold
Well OK it is. That's hardly worth a hoot. But the rest of what he has to say is. Let's look at a pair of ideas.
- "One thing is not up for debate. Jerome Powell is all powerful."
- "I do believe the market is oversold. I am licking my chops. Right now my subscribers have a 25% cash position. We've taken some losses to help build that. I'm gearing up for the next big move higher. We're gonna have major, major bounces, bounces so big you can make money from them. Once you get out, it's all she wrote. You've made a mistake."
Nonsense From Bank of America Via MarketWatch
I'd post a clip but I won't pay for garbage to do so. So let's focus on the subtitle that caught my eye.
"Just $3 for every $100 invested has left the stock market," says Bank of America
Mish readers no doubt are laughing their heads off.
Precisely $0 has left the market because leaving, in aggregate, is impossible.
For every sock sold there is a buyer. It is mathematically impossible for money to leave the market given that fact.
S&P 500 Weekly Chart
I created that chart a few days ago, but nothing has changed technically.
The bounces keep getting weaker and weaker.
Bounces can happen at any time, but I don't expect a major one until the 3700 level or so. And I don't expect that to hold.
Then we can expect a bounce at the 3200 level or so, and I don't expect that to hold either.
For further discussion, please see my May 5 post Bond Massacre Continues and the Fed Dove Rally Fails Already
One final point: In bear markets, "oversold" can last a long, long time just as "overbought" goes on and on in bull markets.
So don't let notions of oversold be your guide.
This post originated at MishTalk.Com.
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