Following a hat trick for all three major indexes last week, both optimism and trepidation are in the air as a new trading stretch begins.
Stock futures are up amid hopes that the week’s big data — CPI due Tuesday — will show nosebleed inflation easing up a little. Maley also provides our call of the day, where he warns of a potentially rough September/October period ahead, with chances that a second leg of a bear market could develop, exposing “naked swimmers.”
“That, in turn caused some serious selling in the stock market,” because some leveraged investors had to sell big-cap tech stocks to raise money to meet their crypto margin calls, said Maley. So, if bitcoin BTCUSD starts to break below June lows that could mean problems for other risk assets as well, he cautioned.
“What if a serious problem with counterparty risk were to develop…and people stop trading with one or more entities? That could create problems in the physical delivery market as well………As we learned during the GFC, whenever the problem of ‘counterparty risk’ raises its ugly head, it’s always bad for risk assets,” he said.
The buzz Bristol-Myers Squibb BMY stock is surging after the FDA approved its Sotyktu drug for psoriasis.
Marketwatch’s website is just terrible.