With stocks looking ready to try again for a post-Powell recovery, caution is in the air, with some big banks preaching.
No doubt some may be looking to get a little bit more close to the road, as larger institutional traders are likely to return from the holidays to increase market size after the hard hit from the Fed.
our Today’s call He says as the bulls and bears wrestle, the best way forward for investors is to stop fighting the Fed, stop fighting trends and let the markets lead. It comes from Mark Ritchie II, Chief Investment Officer at RTM Capital Advisors and son of the legendary investor of the same name.
In an interview with Real Vision published Monday, Ritchie touches on the return of these big players, saying “if institutions really start to emerge and sell en masse,” markets are on their way to a new low or retest.
As an opponent, he says his best setup will see markets continue to slide, lows retest and “everyone at the end of the world becomes bearish.” But he wants investors to remain open here, as we could also see a strong rally from lower levels, or a longer secular range where the markets don’t see new highs.
That’s why it’s important to lead the market, he says.
Everyone “likes to look at, well, what was the hot stock last time, or what was beat the most. And I’d say you want to look the other way. The market is smarter than all of us…let the market tell you where the strength is,” Ritchie said. and see if it will hold.
That means for investors who have taken a long time in some areas and find that these jobs work, “you should probably try to stick with it.”
“So even if this market declines, and even if we hit new lows, you want to look at … what are the areas that are resisting this market pull,” he says. Currently, he is focusing on biotechnology, some semiconductors and solar energy, in green energy. He said these sectors should be of interest to anyone looking to hire capital to work out whether markets may be bottoming or in a downturn.
He said that if these groups flip and collapse again, that will tell me that there is no leadership in this market. Let’s say it’s a green energy zone. If it only pulls back moderately, the market is heading to new lows, making increasingly lower highs, and that’s bullish.”
Ritchie says leadership remains his biggest concern for the markets. “Leadership goes, get out of the shuffle. I’m much more interested now than I was saying in March, because it looks like we have a little bit of leadership.”
It is also watching for a potential “dollar wrecking ball”, as other big moves in the US currency – which is up 13% year-to-date – are “likely to coincide with bearish moves in equities”, and “likely to break things in”. the whole world”.
Ritchie’s full interview can be found here.
markets
ES00 stock futures
YM00
NQ00
Rising, as the bond BX: TMUBMUSD10Y
Selling gets a break and the dollar is DXY
Lightens up a little. Crude Oil Prices CL
BRN00
Falling, while BTCUSD drops
She owns just over $20,000.
commotion
Twitter TWTR
Tesla’s stock fell and TSLA
It was floated in the initial market after EV CEO Elon Musk sent a letter to the social media company, adding more reasons why he wanted to back out of his $44 billion deal.
Baidu Baidu
The stock is rising as a result of higher earnings and revenue from the Chinese search engine.
large large quantities
The stock is rising after a smaller-than-expected loss in the second quarter.
AMD Advanced Micro Devices
Launched the world’s fastest game card.
Minneapolis Fed President Neil Kashkari said he was pleased to see the market’s reaction to Powell Jackson Hole’s speech. “People now understand how seriously we are committed to bringing inflation back to 2%.”
Two of the Fed’s speakers are on Tuesday – Richmond Chairman Tom Parkins at 8 a.m., New York President John Williams at 11 a.m. We’ll get the US home price index from S&P Case-Shiller, consumer confidence and jobs.
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