When bonds and stocks both fall

When bonds and equities both fall, it’s a sign of indiscriminate selling.

Big Tech has been an obvious victim and the watchlist below shows that it doesn’t matter what you own.

In fact, during yesterday’s trading, there weren’t many places to hide.

There have been some reports citing that this past day mimics those seen on October 9, 2008 and March 18, 2020.

All this tells us is that some parties are in some type of forced liquidation. There is no use in speculating who and why.

However, such an occurrence isn’t reliable in calling a bottom in the S&P 500 as other indicators such as long-term RSI’s, Standard Deviations and VIX (to name a few) do not marry up with the plunges seen in 2008 and 2020.

May 6, 2022

by Rob Zdravevski

rob@karriasset.com.au