The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Blender.
Despite yesterday’s gargantuan rally, buyers were overwhelmed today. The S&P opened down about 110 points and sunk much lower during the morning. The index bottomed at 5115, down 6.2% for the day around 12:30 PM. That was a rough moment. The index laboriously repaired some of the worst damage during afternoon trading.
News today wasn’t remarkable. We are trying to figure out the state of the world. The global tariffs are on hold, sort of, for 90 days. So the question remains, what’s that mean for the market? What should stocks be worth with economic calamity on the 90-day horizon and the economic confidence of the world presently rattled into non-action?
Nobody has a good answer and markets are bouncing back and forth from hope to despair like they are watching a tennis match.
We have very little of substance to discuss right now. The fundamental landscape is on a cusp. It could go well or badly on the words of the President. Longs are hoping this situation resolves quickly but they haven’t been shaken out. Yesterday’s rally just gave them a ton of courage too. Shorts are too beat up to jump back in with any kind of muscle. Is this the kind of environment that attracts long-term investment? It seems too volatile for that.
Given that mix of players, I don’t think we’re anywhere near a bottom. I also don’t think there’s much upside.
It’s all a mess though and without consistency from policymakers, you can’t get stability in the markets. It’s going to stay bumpy for a long time.
See you tomorrow.
-Mike
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