Are Stocks Tumbling Too Far Too Fast?
Cam Hui | Jan 26, 2014 12:29AM ET
I know that I had said that the week after option expiry tends to have a negative bias and I expected some stock market weakness last week (see In conclusion, I believe that the suddenness and violence of the two-day stock market downturn are suggestive that prices are likely to bounce next week - at least until Wednesday when the FOMC announces its decision.
I will be watching two things. First, can the bears follow through with further weakness? As well, how will sentiment measures developing? The persistence of bullish sentiment will be contrarian bearish, while an upsurge in bearishness would be supportive of further stock market strength.
Disclosure:Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. (“Qwest”). The opinions and any recommendations expressed in the blog are those of the author and do not reflect the opinions and recommendations of Qwest. Qwest reviews Mr. Hui’s blog to ensure it is connected with Mr. Hui’s obligation to deal fairly, honestly and in good faith with the blog’s readers.”
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