Risks Out There 06 (May 20 - Apr 23)

[winston]

Why Market Action is Making This Columnist Wary

The recent trading environment reminds Real Money's 'Rev Shark' of what was going on in February.

by BRIAN O'CONNELL

“Breadth is moving close to three-to-one negative,” Deporre said.

“New 12-month highs have shrunk to 125, there are less than 10 stocks up more than 10%, and the selling is correlated and without much regard to fundamentals.”

Source: The Street

https://www.thestreet.com/investing/why ... ist%2BWary

[winston]

A major stock market decline still lurks: strategist

by Brian Sozzi

Chadha argues that the conditions remain in place for a market reset in large because economic growth is peaking and stock valuations remain elevated.

Canaccord Genuity feels the market could very well climb into year-end after getting through its current rough patch. Cyclical stocks look attractive.

Source: Yahoo Finance

https://finance.yahoo.com/news/a-major- ... 55366.html

[behappyalways]

Spillovers????

World's Largest Commodity Traders Face Massive Margin Calls As Global NatGas Arb Explodes
https://www.zerohedge.com/energy/worlds ... b-explodes

[winston]

4 big risks that could trip up the stock market soon: Goldman

by Brian Sozzi

Four risks to investors from upcoming corporate earnings reports:
(1) supply chain bottlenecks;
(2) climbing oil prices;
(3) inflationary labor costs; and
(4) slowing China economic growth.

Source: Yahoo Finance

https://finance.yahoo.com/news/4-big-ri ... 05923.html

[winston]

The next financial crisis is fast approaching

By Willem H. Buiter

Central banks need to prepare because global stock markets and real estate are overvalued, while leverage is near record levels for households, corporations, banks and governments.

Source: Market Watch

https://www.marketwatch.com/story/the-n ... eid=yhoof2

[winston]

Morgan Stanley’s Mike Wilson Warns of Fresh Stock-Market Pain

by Justina Lee and Cecile Gutscher

A 20% plunge in U.S. stocks was a real possibility.

Growing supply-side crisis around the world.

Earnings season will do little to temper commodity-fueled inflation fears, just as pent-up consumer demand fizzles out.

While the S&P 500’s multiple has already slipped to 20 times its coming year’s earnings, the analyst sees a further decline to 18 in the near-term.

Treasury selloff extended for a third day.

Retail investors have become increasingly absent as buyers of the dip.

Barclays recommends value stocks -- cheap, typically cyclical names like banks and energy producers that tend to gain along with bond yields.

Source: Yahoo Finance

https://finance.yahoo.com/news/morgan-s ... 21080.html

[behappyalways]

Is Gunvor Getting Flushed? How NatGas 'Netbacks' Are Crushing The Secretive Commodity Trader
https://www.zerohedge.com/energy/gunvor ... ity-trader

[winston]

6 Stocks Make Up 24% of the S&P 500. If They Ever Crack, the Party’s Over.

by Lee Jackson

Apple Inc. (NASDAQ: AAPL): 6.0% of the S&P 500
Microsoft Corp. (NASDAQ: MSFT): 6.0%
Alphabet Inc. (NASDAQ: GOOGL) (Google): 4.1%
Amazon.com Inc. (NASDAQ: AMZN) 3.7%
Tesla Inc. (NASDAQ: TSLA): 2.1%
Facebook Inc. (NASDAQ: FB): 2.0%

Source: 24/7 Wall Street

https://247wallst.com/investing/2021/10 ... rtys-over/

[winston]

6 Stocks Make Up 24% of the S&P 500. If They Ever Crack, the Party’s Over.

by Lee Jackson

Apple Inc. (NASDAQ: AAPL): 6.0% of the S&P 500
Microsoft Corp. (NASDAQ: MSFT): 6.0%
Alphabet Inc. (NASDAQ: GOOGL) (Google): 4.1%
Amazon.com Inc. (NASDAQ: AMZN) 3.7%
Tesla Inc. (NASDAQ: TSLA): 2.1%
Facebook Inc. (NASDAQ: FB): 2.0%

Source: 24/7 Wall Street

https://247wallst.com/investing/2021/10 ... rtys-over/

[winston]

China's clamp on overseas trading may crash market

Investment overseas by mainlanders have surpassed the US$1 trillion (HK$7.8 trillion).

If China's regulators decide to totally ban overseas stock trading completely, mainland investors may be forced to sell assets worth trillions of Hong Kong dollars - compared to the HK$150 billion daily turnover in Hong Kong's stock exchange - in a short period of time.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... ash-market