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Strength of the Market
a weekly blog on what's happening in Financial Markets

The Strength of the Market is: Weak

Financial Markets woke up today shocked that Saudi Arabia announced that they would be cutting oil prices and, also, increase oil production. This announcement made oil have it's largest one-day sell-off since the 1991 Gulf War. To make things worse, coronavirus' global infections and deaths keep increasing - many U.S. States have already declared States of Emergency. Now, in regards to price trends, all are waving negative flags - Short-Term (21-day), Medium-Term (50-day) and Long-Term (200-day). It is important to report that, although not very fun, these types of market sell-offs (10% to 20%) do occur, on average, about twice per year. So, to experience this, is not completely out of the ordinary. The normal recovery time of a market sell-off, similar to what we are experiencing, will historically be somewhere between 100 to 200 days.

Our 'Strength of the Market' view is now: Weak


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