Where are we in the sell off? Phase 1 of heavy deleveraging is may be over, making way for the rebound (phase 2). Equity markets fell 35% in a very short period of time, hence a rebound is all but normal, and with big selloffs comes big rebounds. The recovery could stretch until month end as equity funds re-balance their portfolio for the end of the quarter. UBS research shows US active funds equity positioning is now 2.5 standard deviation below average, in line with the 2008-09 lows.
However a V shaped recovery is unlikely given the damage to the economy. The corona won’t just disappear overnight and a long-term process of basing and filling stretching over several weeks, maybe months will probably be needed before we can expect a more durable/stable recovery.
Ichomoku cloud and 50% retracement limits the potential upside. A retest of the lows are likely from there
However a V shaped recovery is unlikely given the damage to the economy. The corona won’t just disappear overnight and a long-term process of basing and filling stretching over several weeks, maybe months will probably be needed before we can expect a more durable/stable recovery.
Ichomoku cloud and 50% retracement limits the potential upside. A retest of the lows are likely from there
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.