You can almost the fear and confusion on twitter this evening. Rumours abound that Credit Suisse is on the verge of going bust thanks to some pension fund liabilities. So… Credit Suisse = Black Monday?
Credit Suisse = Black Monday? Read More
Well, another very difficult week is behind us and to be honest we think there are many more difficult weeks ahead over the next few months. The realities of a global recession are starting to ‘hit home’ so to speak and global equity markets are not happy. Although we are seeing nothing but shorts in the shorter-term, we do think the most important message to get across in difficult times such as these is two-fold:
Markets bounced pretty hard last week on the back of an options-led squeeze, and it’s fairly likely that we see more of the same in the coming week.
Ok, ok, spring just started here in South Africa… but in the northern hemisphere winter is fast approaching and looking at all the charts, economic indicators and just general happenings in the conflict with Russia… let’s just say that things are looking pretty dire. Welcome to winter northern hemisphere, I hope you are ready for a cold one.
Jackson Hole? More like Jackson pit of despair! Markets did not like Jerome Powell’s speech. Where do markets go from here?
More like Jackson pit of despair Read More
Although markets have rallied hard in the last few weeks, we are not convinced that we are out of the woods. How much more squeeze is left in this rally?
How much more squeeze? Read More
Investor sentiment is at almost historic lows. Most of the time it pays to be a contrarian, although sometimes is better to just be patient.
The time is finally here and soon we will know the fate of markets for the next six months. It’s all about earnings as companies start to report 2nd quarter numbers this week. If we see that earnings is down broadly, we think that could lead to the second leg lower of this current bear market. Until now, despite high inflation and the odd absolutely counterintuitive personal stimulus cheques American’s have been getting, corporate earnings have been rather robust. The post-covid world has served the world’s largest corporations well… but has the money printer eventually managed to do more harm than good? In our view, yes.
It’s all about earnings Read More
The market has been really difficult these past few months. Well, to be honest, these past few years. It seems though that finally the retail army has been filled with fear and we saw retail flows sell en masse last week (the week before we saw institutional selling) while institutions started buying again. Although this by itself is not a reliable indicator on which to take action, it does show that ‘the smart money’ is starting to nibble at equities again. There is also around $33bln worth of US equity buying to do before the end of the quarter in order for pensions funds to rebalance and remain withing legislated asset allocations. Add quarter end and the ‘window dressing’ phenomenon and you the makings of a bull potion. Bigger picture wise, there is no real change and the world economy still looks very much in trouble, but in the short-term, Friday’s bounce might have legs for another few days.
The markets got smashed last week and even managed to close the US session on the lows. Strangely, sentiment is not at an extreme and it seems that through all of this, retail investors and traders have been net buyers. To us, this sounds like more pain is on the way. So without too much pontification, let’s look at some charts and see what we can find (other than ‘look out below!’ signs nailed to pretty much everything).
We’ve received your information and will be in touch shortly. We’re excited to help you on your trading journey with Herenya.
In the meantime, check out our other pages with the drop down below:
