Depending on the coronavirus news on Sunday Night into Monday, once again, we could see some selling pressure. However, it is also possible at some point during the week we could test 3022 and 3130 - whether over futures or during regular market.
However, the kicker is that all rallies will be sold into until this virus is contained and its proven that economic indicators, including and especially that from China have reversed or are showing signs of reversing which could be an extremely improbable ask.
According to officials any vaccine is at-least 12-18 months away and that is a long time for the markets to stay on the side-lines.
I believe ultimately sometime in the next 3-6 weeks we will test a 10 year trend-line which puts us around 2650-2720 or roughly another 10% drop from Friday's close. Generally, I have advised people to be purchasing only quality dividend stocks and specific secular growth stocks such as Fortis and Franco Nevada and of course Gold.
In terms of buying momentum stocks like Apple, Microsoft and so forth, you want to stay totally on the side-lines as we are likely undergoing the beginnings of a black swan event down to the 2600s at the very least.
- zSplit
However, the kicker is that all rallies will be sold into until this virus is contained and its proven that economic indicators, including and especially that from China have reversed or are showing signs of reversing which could be an extremely improbable ask.
According to officials any vaccine is at-least 12-18 months away and that is a long time for the markets to stay on the side-lines.
I believe ultimately sometime in the next 3-6 weeks we will test a 10 year trend-line which puts us around 2650-2720 or roughly another 10% drop from Friday's close. Generally, I have advised people to be purchasing only quality dividend stocks and specific secular growth stocks such as Fortis and Franco Nevada and of course Gold.
In terms of buying momentum stocks like Apple, Microsoft and so forth, you want to stay totally on the side-lines as we are likely undergoing the beginnings of a black swan event down to the 2600s at the very least.
- zSplit
