Stocks Enter “The Sell Zone”

Sunday, June 30, 2019
By Paul Martin

by Sven Henrich via NorthmanTrader.com,
ZeroHedge.com
Sun, 06/30/2019

On Mount Everest the Death Zone is the altitude above 8,000 meters above which climbers cannot survive for an extended period of time without oxygen (speak: artificial help). In the Death Zone “most climbers have to carry oxygen bottles to be able to reach the top. Visitors become weak and have inability to think clearly and make decisions, especially under stress“. It is my assertion that investors and traders are confronted with a similar situation as the S&P500 is approaching its own version of the Death Zone, the Sell Zone, in the vicinity of the 3,000 level.

Why? Because stock buyers can’t sustain themselves above 3,000 without artificial help (central banks), the rallies keep getting weaker on an equal-weight basis, and investors are experiencing dizziness and find it difficult to think clearly in an environment where fundamentals and bond markets scream recession yet stock markets keep climbing to new highs.

In this week’s edition of the Weekly Market Brief, I’ll outline what I consider to be a major Sell Zone for markets and will also make clear where/when I think I’m wrong, meaning central banks once again retain control over the price equation irrespective of fundamentals.

Let’s speak plainly and realistically.

The Rest…HERE

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