Submitted by Lance Roberts via RealInvestmentAdvice.com,
Last Friday the market closed below its 50-day moving average. Theoretically, such a close should have sent traders scrambling for cover Monday morning. As I noted in this past weekend’s missive:
It's over...Hotflation and Fedspeak - unless the S&P plunged 200 points, June is on like Donkey Kong.
Who could have seen that coming...
Once again the narrative spewing forth from today's Fed speakers is that "the market is too pessimistic" presumably meaning the bond market because stocks are near record highs; and crucially, that despite collapsing industrial production, plunging GDP expectations, near-record inventories, and weakness in employment data that the US economy is "doing well" and that "June is a live meeting" for a rate hike... the equity market is not amused...
When we reported yesterday, in our daily novelty humor post about the relentless flipflopping of "world-renowned" commodity guru...
... and CNBC Fast Money staple Dennis Gartman, that the newsletter seller said he was "quietly, but steadily, in our own account… our retirement funds here at TGL and the only money we manage but money that is really rather important to us, obviously!... we are turning bearish of equities", we warned "beware the squeeze."
The market proceeded to explode higher.
Over the weekend, we were surprised to read that none other than recent market cheerleader Goldman Sachs had come up with six reasons why its chief equity strategist believes the market is poised for a material draw down (read "big drop") in the coming weeks. Among these were the following: