KLSE (MYR): MBSB (1171)
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0.735
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Orange88
4,181 posts
Posted by Orange88 > 2018-04-26 07:56 | Report Abuse
I AM WAITING BABY.....
It's clear the market is telling us there is a problem up ahead
The market's biggest leaders, the so-called "FANG' stocks, are getting defanged on a nearly daily basis, despite delivering extraordinarily strong profits.
Indeed, among the S&P 500 companies reporting profits for the first quarter, 83 percent have beaten expectations and yet their stocks are plunging.
Unless and until the market suggests otherwise, there is accident somewhere down the road.
Ron Insana | @rinsana
Published 4:05 PM ET Tue, 24 April 2018
CNBC.com
S&P stock index options traders
Getty Images
If, like me, you've ever been stuck in a serious traffic jam and didn't know why, then I think you know what it's like to be in this market.
At first glance, when you got on the highway, all was clear. You could see a mile or two ahead, but you couldn't see the problem down the road.
Then, you see a sign above you that says, "Accident ahead, expect delays."
Now you know why you are jammed, but you can't tell if it's a fender-bender or a 10-car pile up.
And that's where we are in this market.
It's clear there is some kind of problem ahead, whether its peak economic growth, peak profits, a looming trade war, political upheaval at home or a geopolitical event abroad.
To me, the market appears to be signaling trouble, with all of the above being possible culprits, either individually, or in combination.
Hence, I have been suggesting that this is a market in which one sells the rallies, rather than buys the dips.
Steve Shobin, a Wall Street veteran and astute technical analyst, often talked about the "news response syndrome." This was a technician's way of saying that markets know more than we do at any point in time.
If the market rises on bad news, it is climbing a "wall of worry."
If it rises on good news, the world must be alright.
But if it sells off on good news, such as strong economic numbers, record profits and possible break-throughs on global issues, that "message of the markets" (my version of the "news response syndrome,") might just be ominous.