Financial Markets Newsletter

French Election Results on Tap

A pretty quiet week in terms of price action as the indices remain in a divergent situation as the small cap index (Russell 2000) is confirming lower prices are coming (see Chart Time!). The French election results will dominate the news cycle on Monday but I don’t expect any surprises so its likely markets shrug […]

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The Trump Rally is Over

In the last Market Update (two weeks ago), I discussed a correction along the lines of 5% that was imminent and what we got was a shallow zig-zag like correction that ended with the Fed announcement on Wednesday (more on this in the next section). A larger correction is still in the cards so we may have a “sell […]

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The Uptrend Is Weakening

The rally since the Presidential election has finally started to show its age. Sentiment is at extreme highs and there are technical signals that a moderate correction is at hand. How much? We can look to the prior correction of 6% from last spring/summer that lasted about eight weeks as a proxy (more in the […]

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