Futures Open Down Hard, S&P Nears Bear Market (Again)
US equity futures have opened down hard in quiet Sunday night trading with Nasdaq the hardest hit, down 1.5%. This move leaves the S&P down over 6% in the last 3 days…
…and once again nearing the ‘bear market’ Maginot Line…
Which we doubt will be so eagerly bid this time ahead of this week’s chaotic event risk (FOMC) and technical factors (VIX/Equity opex).
Gold is up modestly, oil down over 1%, Treasury futures are down very small for now (equiv around 1bp higher in yield), and the dollar is extending Thursday and Friday’s gains…
As we detailed previously, veteran hedge fund managed Stan Druckenmiller warned this week that:
“My best guess is that we’re six months into a bear market,” adding that “for those tactically trading, it’s possible the first leg of that has ended. But I think it’s highly, highly probable that the bear market has a ways to run,” he added.
When it comes to investing himself, Druckenmiller said he’s taking a step back from trading.
“I’ve lived through enough bear markets, that if you get aggressive in a bear market, on the short side, you can get your head ripped off in rallies. I’m pretty much taking a break,” he said.
Finally, Druckenmiller worries about the many “bull market geniuses” that were surfing with a hurricane, giving them some nice waves, though like anything, nothing lasts forever.
Sun, 06/12/2022 – 19:55