Moniology Weekend Market Review, 3.29.2020
“The global equity markets continue in very bearish territory. Although the odds of a sharp bounce are increasingly likely, for that to happen, the S&P 500 needs to break back above 2400 and soon. As of this writing, it’s trading at 2200 in the overnight futures, down close to 4%…not good. Ideally, we would need to see a red to green day to create the kind of short-covering rally that can take equities 10-15% higher.”
That was our call last week and I’d say it turned out to be pretty accurate. Now that we’ve run into our first bit of resistance, the question becomes where we’re likely to head from here. After our analysis of various sectors and asset classes, my best guess is we will bounce around between 2480 and 2600 for a week or so before determining the next leg’s direction. My hunch is that there is more upside ahead before any move lower. Almost every “expert” on FinTwit is bearish these days and expects markets to move lower (or even much lower) from here. I don’t see it at this juncture.
P.S. As many of you know our favorite sector for long-term investment has been Uranium. I think we’re finally seeing a breakthrough that will take many names in the sector 10-20 or even 50 times higher. We’re not yet in the first inning, but the upside breakout in Uranium last week was a very positive first step. What i’ll be looking for this week is a move above 30 in the price of Uranium. Were that to occur, I think you’ll see some oversold names double or triple from their lows. Stay tuned.
$SPX $COMPQ $TNX $GOLD $VIX $WTIC $USD $EEM $JNK $USD
**Disclaimer** This video is for educational and information purposes only. Please do your own due diligence before determining whether to buy or sell any security.
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