Bullish … rating of 7 (0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish).
During the last week or so, we've had a lot of favorable news about the economy reopening. The market liked that – it gave many a feeling that we are "overcoming" the coronavirus.
From 4-7-20 - I’ve been projecting that when a measure of confidence arises that the coronavirus is “under control”, we will have reached the bullish inflection point that will permit the market to rise back to prior levels, over what I believe will be a 15 month period. We are seeing the beginning stages of this, but a significant down day is still possible if the trend worsens for a day or two.
Most probably, the situation with oil yesterday has caused a lot of market participants to rethink their enthusiasm about the economy reopening. In other words, the oil situation curbed their enthusiastic. Rethinking enthusiasm for the current situation can lead some to begin selling, i.e. taking profits, but it can lead a large group of others to pause their buying activity, i.e. "let's see if the market gives us a chance to buy at lower prices than today". Combined, you end up with a falling market until the unsettling news fades.
We have some cash that has not yet been redeployed. This may end up being the opportunity to do that. Let’s see what happens as we progress through this week.
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Opinions voiced in this post are for general information only and are not intended to provide specific advice or recommendations for any individual, without complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results #StockMarket . #Investing . #TwelveoclockTuesday