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Schaeffer’s Investment Research Senior V.P. Todd Salamone and RJO Futures Senior Commodities Broker Phillip Streible on the outlook for the markets.
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And we have now talked -- -- -- he's senior vice president shapers investment research and -- you believe.
That we are looking at a market bottom right now this is the point at which you would go it.
Yes we're looking right now at.
And especially -- back like this substantial buying opportunity.
You know what we're really looking that David is the sentiment backdrop.
Were seen in the options market for example.
I'll put behind which are bearish bets on equities.
Relative to call buying which is bullish bets on equities.
I'm we're seeing put buying his bearish bets at the highest level since March 2009.
-- and then and then you got short interest this year even with the S&P up 45%.
-- short interest on S&P components stock's up 11%.
Hot -- -- a little more concern would be a little more concerned that this that this was a short covering rally.
But we -- a short interest ads into this rally which means all these pullbacks you can get short covering -- services support.
Or if we stabilize.
The short coming in any cover.
On the -- should basically essentially what I'm saying is this sentiment backdrop is more.
A line would market bottoms the market peaks -- And Charlie -- Brady our assignment editor senior editor is saying that the put call ratio -- hit about one point 10 so.
You know -- you bring that into the whole picture there but let me stay with taught your first second.
I mean if you just pull up any names here Home -- down 3%.
Yeah IMAX and -- -- all different ones don't three and three quarters percent.
Goldman Sachs down about two and three quarter percent would you stay away from from the financials and go with big names like -- -- -- -- IMAX and and that what -- at least open to good names not.
Points -- shippers such gyrations.
If it financials -- you -- biggest area of vulnerability.
Sector wise gold is also an area vulnerabilities of yes those are the sectors that we would avoid.
Those are the wild cards -- -- Again back to the technical backdrop were watching the S&P -- twelve.
16129.
-- if we -- to break below there on a technical basis would be a little more concerned.
But as of right now yes avoid the financials that is the biggest area of vulnerability that's that's the sector than everyone loves if you think back to that job.
Big money point -- back and spurring.
Let me go back to fill up because I'll I'll give talk this much first of all he's he's a very brave man to -- market about the bottom of the market -- such conviction in this selling market -- but.
The one point that I will give him is that valuations.
In this market are not at all -- this is not a sell off based on.
On the stocks having these huge valuations as we sometimes see in selloffs.
This is a sell off where valuations have been relatively moderate some people would even say low.
-- go ahead.
Yes so then valuations -- RR markets it's it's not.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Yeah I mean they have been in they've been for awhile and I think that's why you know the equity markets have had that rise -- you've seen a lot of Ford and masters shifting some of their money out of white.
You know markets like.
You noted that -- for the Dax of the footsie and they've been looking for safety out of Europe and they've been coming to the US and picking up some of those blue chips.
Within the S&P 500 also use of that threw me for a curve ball -- today -- all this pessimism gold market down fifty dollars today.
I wouldn't be surprised to see that things snapped back a little bit.
And the next day or two especially people are gonna start looking at -- valuation.
Down fifty dollars on a day when it seems that you know the market is really falling apart and you've got worries about downgrades.
I'd say looking at gold backed you know traveling back up only 16100 dollars on the cards.
Aren't filled before relating go quickly adds up to ask you expect that the Russell re -- which happens tomorrow will add a positive effect on sometimes you see more volume -- and this -- change the outlook for trading tomorrow.
Yeah what what it does it reassess is some of the all longer term traders and all the people who -- and therefore it you know quarterly positioning.
And they're gonna want to reassess some of the -- core portfolio weighting is so you will see.
A fluctuation but I think -- The problems that we've got face in the market right now I don't think we're gonna be able to sustain any rally -- -- we consolidate Abbas that the star and then we made process a little bit lower.
Talk sellable audio -- investment research and fill orders CU -- -- S&P futures closed it just a couple of minutes.
