The brilliant fucking geniuses from Switzerland are suggesting, in the strongest of terms, to avoid buying any dips until late October or early November, for much lower prices are ahead.
The dislocation in the bond market was their catalyst to get super bearish and issue reports predicting dire straights.
Emphatically, they do not believe Friday was a one off event and that any bounce from short term oversold levels should be used to liquidate holdings.
If you enjoy the content at iBankCoin, please follow us on Twitter“A breakout in bond yields and rising bond market volatility was our favored trigger for the [S&P 500] to move into our suggested medium-term September top as the starting point of a volatile correction process,” they write in a note published on Wednesday in which they call for an 8 to 10 percent correction in late October or early November.
“The Friday sell-off is in our view not a one-day event,” they add.
“The key message is that with other sentiment studies and/or flow themes we are still at levels that are far from any real buy levels,” they conclude. “So even if were to see another positive surprise on the upside, we would see this bounce as just a fake and/or still as part of a distributive top-building process.”
250ish-bp long bond is not a bad thing. Everyone done got scared a nothin.
Too much debt to finance at higher yields. Will not happen.
Which is exactly why it will be a one time event.
They prolly short and talking their
Book
BTFD now and sell when Trump is leading by a wide margin in the polls before election date or on Nov 8th regardless who wins POTUS.
Interesting that a drop in bonds were their signal for a sign of decrease equity prices… it’s like the Twilight Zone.