At 4:15pm ET, DoubleLine's Jeff Gundlach who continues to do no wrong in the market (even if it means buying stocks at his most doom and gloomish ahead of a record short squeeze), will hold his latest webcast titled "Connect the Dots" and in which he will explain why, as he told Reuters moments ago, "the rally in risk assets is nearing the end", which in turn explains why when the short covering frenzy had gripped the market last week, Gundlach was cashing out.
To register for the webcast, click on the image below.
More details from Reuters Jennifer Ablan:
Jeffrey Gundlach, chief executive officer at DoubleLine Capital, said on Tuesday the recent rally in risk assets is nearing an end.
Gundlach, who told Reuters last week that the firm is now considering closing out some of its long positions in the stocks they had purchased in February, said risk assets will struggle in sympathy with oil.
"Oil, like I said, had an easy time rallying from 28 to 38. Now the hard work begins," Gundlach said. "Oil is the key to everything."
Gundlach said unless oil rallies another $10 a barrel or more, "a lot of companies are going to go under, which will kill the banking system. The rally off the 200 low (in copper) hasn’t been that impressive, and looks to possibly be over."
Gundlach said in a webcast later Tuesday that the Standard & Poor's 500 Index, which he characterized as being in a bear-market rally that is close to being over, has 2 percent upside but 20 percent downside.
Gundlach's punchline: "I think we are near the end of a bear market rally with a 10:1 risk/reward ratio." We agree.
The full presentation is below:
http://www.scribd.com/embeds/303225903/content