Is the macro gloom and doom starting to tell its narrative through shaky stock prices? If today was any indication, the answer could be a resounding yes. Now I do not want to sound like the world is coming to an end, but can a market correction in the neighborhood of 5-10% be forthcoming? Sure. Until recently the benchmarks were shrugging off a negative US GDP number, a surprising WMT sales shortfall, a UK downgrade, etc. I believe that hint from the Fed minutes last Thursday, suggesting easy money policy going forward may not last as long as perceived, may have precipitated some nervousness among the abundant bulls. A prudent pullback may be just what the market needs. Looking at some individual names that were concerning included FDX. The stock was on my radar this weekend after it completed a bullish 3 week tight pattern (created when a stock closes 3 consecutive weeks within 1% of each other) with a trigger of 107.60. Today it recorded a bearish outside day. Volume was light and it has run far, but today could have been a tell. When I see stocks like CPB, which had its first weekly close above 40 in 13 years last week, behaving very well, that too is concerning. Perhaps a contrarian indicator, which would have me ponder my bearish stance, occurred this afternoon when I received an email solicitation from Elaine Gazarelli, famous for predicting the 87 crash.
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