[WATCH] Closing Bell — Don’t Look Down

By Murray Dawes, Saturday, 07 May 2022

In today’s Money Weekend…ASX 200 has been holding up well…it looks like the low of the correction isn’t in yet…and more…

In today’s Money Weekend…ASX 200 has been holding up well…it looks like the low of the correction isn’t in yet…and more…

Many key markets around the world are neatly poised on a knife edge.

The US dollar looks like it is itching to bust out to multidecade highs. The US 10-year bond yield is heading towards 3.25%, which is the highest yield in a decade. A spike in yields above there could see the selling accelerate.

The S&P 500 is testing the low of the correction of the past four months, and if the support can’t hold, stocks could fall another 15%.

The ASX 200 has been holding up remarkably well, but another leg lower in US markets will knock the stuffing out of our outperformance.

Major support levels don’t give up their ground easily, so there is still a chance prices can find support and muddle along for another few months before turning back down again. But it looks like the low of the correction isn’t in yet, so traders and investors need to keep their wits about them as we move forward.

Click on the picture below to watch the latest episode of the ‘Closing Bell’ where I discuss the explosive set-up in the US dollar, US 10-year bond yield, S&P 500, and ASX 200.

Until next week,

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Murray Dawes,
Editor, Money Weekend

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.