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Albert Fried & Co. Managing Director Ben Willis on why investors should expect a market pullback by the end of September.
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Cons here's the question with all of the negative headlines out there and we have asked this question many times.
Could the broader markets which have had a beautiful run up over the past year be due for a -- back soon.
Let's bring back super trader Ben Willis of Albert -- It's a question if we look at the -- levels that this is the one year picture it has been a very nice here for the Dow Jones industrials the S&P both up double digit percentages.
Both year to date and year over here you say it is time for some type of pullback but the word should comes into play the market should do this I -- -- Greater but will it.
Well I've truthfully I thought it would do it sooner but we've had the the if the hot wind effect if you will not on crops but on.
The equity markets led by the central bank's mr.
Draghi had the most significant impact and if you look at the chart you'll see the moves when the -- Central Bank started to -- and and drive us and drive us higher yeah.
As we -- what we saw this pullback right around here in June and then here we -- and we started that this this -- -- -- -- diaries so what I've been saying is that it's it's healthy from market the same way I keep using the same analogy.
If you -- -- healthy rose bush you have to -- and everyone soleil.
The market needs to do that and this is -- time for investors traders trade on this this minutia every day if you're an investor.
You need to look for the times when the stocks go on sale and do that pullback because that's when you should be stepping -- -- -- and let's get to the S&P 500 because that becomes the question by how much.
By how much should we see and have some people back -- -- -- healthy pullback should be about 3%.
Significant pullback and I would like to see is a 5% range so we're talking right around 14113.
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For those are trying to -- -- -- -- exactly -- extrapolate on the Dow had its nine points for every.
S&P number -- the Dow -- would be the equivalent of about thirteen thousand on on the Dow if you will.
So I I just think that they would be helpful it would be for the overall market we have we have reached most strategists levels.
Already for the year we still have obviously three more months ago.
So I'd like to see the market be able to reset itself.
Given entrance points to those investors so they can come back in and buy equity.
I -- -- viewers that it was -- who had specifically said awhile back everybody's looking at European should be looking at China the problem with.
A slowdown in China's you're not sure about the data -- you pick one data point that you like to look at that as a better indicator of whether a market is falling there are coming back.
Fundamentals that the the basis of any marketplace iron ore shipments have been a great indicator if you take a look at that the way the charts -- moved and we see the move.
We this is actually from recovering we've seen a bit of a pick up now does so this is iron ore from Australia -- -- it to Chile China.
China Australia is a great example of -- like an economy being able to export itself to one of the nation for.
China took all the to get in the terms of of iron ore to -- to build to create steel.
That saw major at this time last year iron -- was trading at a 180 dollars a metric ton it's now about 8790.
Dollars a messy -- about it all the way what does this tell you a nice little move to the upside we're starting we're seeing we're starting to see some into some sort of green -- if you -- -- out of China we're seeing a little bit of recovery from the steel side some of the indications that -- the People's Bank of China.
Is ready to step in and stimulate the economy and that's what that chart showing it.
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