Two catalysts that could trigger a stock market correction

Global strategists from Citigroup and JPMorgan both fired off warnings Monday about events that could affect the rally in equities. Citigroup pointed to rising rates as a threat, and JPMorgan analysts said they are concerned second-half earnings may not be as robust as the market is anticipating. Stock prices continue to rise despite concerns about […]

The 2017 rally is about to fade, warns Wells Fargo strategist

he rally that the S&P 500 has enjoyed thus far in 2017 is set to fade in the second half of the year, according to Scott Wren, Wells Fargo Investment Institute senior global equity strategist. He added to his list of concerns that wage increases could damage corporate profit margins heading into 2018, and that some […]

Marc “Dr. Doom” Feber warns, that stocks will plummet 40% or more

If the man often hailed as the original “Dr. Doom” is right, the stock market could see another “lurch” higher — at which point investors may want to cash out quickly and run for cover. Marc Faber, the editor of “The Gloom, Boom & Doom Report’ and a perennial bear, isn’t backing down from his […]

Hedge Funds Go All-In on VIX Shorts Again

Large speculators, mostly hedge funds, went all-in again betting on low volatility, with net short positions on VIX futures rising to a fresh high, CFTC data showed. * Specs were net short 144k VIX futures contracts on June 20, topping the previous all-time high made in May * They went net short on small-caps after […]

Strategists at BofA-Merrill see U.S. small-cap outperformance

Strategists at BofA-Merrill see U.S. small-cap outperformance as fit to fade, predicting that earnings growth for the group will lag the market overall. By no means an illogical bet, as the iShares Russell 2000 ETF shorts are up almost half from their record low of four percent in January. But the bearish change in ETF […]

This is the best trade in the market right now

The nearly decadelong bull market in the U.S. is long in the tooth, and there are better gains to be had elsewhere, according to one strategist. “We have long thought the market has gotten ahead of itself, with U.S. valuations creating a headwind for continued market growth,” Mark Eibel of Russell Investments said Tuesday on […]

S&P 500’s Break Below Diamond Pattern May Spell Trouble

Trouble ahead for U.S. stocks? This chart may be an indicator. The “diamond formation” falls under the category of reversal patterns, where a new high is rejected. With the S&P 500 Index falling below the diamond on Thursday, this might be a signal to sell. Source: Bloomberg Pro Terminal Trader – Senan Fuchedzhiev

Here’s why oil prices could drop to $30 a barrel again: Fesharaki

A leading global energy market academic warned that crude prices could sink back to $30 a barrel if OPEC fails to make additional cuts to production. “The problem is that there is too much oil on the market. There is too much oil from the U.S., too much oil from Libya, too much oil from […]

A Record Number of Investors Say Stocks Are Overvalued

BAML survey shows investors skeptical of U.S. share valuations Fund managers say the Nasdaq is the most crowded trade A record 44 percent of fund managers polled in a monthly survey from Bank of America Merrill Lynch see equities as overvalued, up from 37 percent last month. The technology-heavy Nasdaq Composite Index was named the most […]