Last week I shouted out as clearly as I could that markets were on the cusp of a nose-dive.
In this week’s video, I show you why the odds of further falls are high.
The time for entering positions to take advantage of the sell-off has past and the lower it goes, the higher the risk of a short covering rally.
Now that the S&P 500 has fallen below the 200-day moving average, the market will be on tenterhooks wondering whether a sharp fall is imminent.
The Russell 2000 index, which covers the smallest 2000 stocks in the Russell 3000 index, is looking very sick indeed and is about to head under last year’s correction low.
Mega-tech companies are also looking quite toppy to me, and I show you a bunch of them in today’s Closing Bell video.
There was one bright spot during the week as a result of China’s announcement that they will be restricting the export of synthetic and natural graphite.
The Australian graphite sector is lighting up like a Christmas tree and could have further to run since it’s been hammered so mercilessly over the past year.
I show you my top picks in the graphite sector to keep your eye on.
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I’m also looking forward to writing to you from our evolved newsletter, Fat Tail Daily, for the first time next week.
It will be awesome having all the Fat Tail minds writing in the same e-letter, sharing the best ideas we have to offer to our loyal readers.
Keep an eye out for that next week.
Editor, Money Weekend