June 24, 2022
Good morning,
It feels like financial markets are finally prepared to exhale and calm down a little – daily swings this week have narrowed and the VIX has drifted down below 30 (and below its moving averages: 10, 20, 30 and even 40 day). Short term sentiment signals, while not yet at extreme levels, all sit in oversold territory (that’s bullish). Despite this week’s selling reprieve for equities, they are still deep in the red for the month, and may catch a tailwind from institutional month-end asset allocation rebalancing next week.
Following Tuesday’s Morning Note, a reader asked quite simply, “What are you trying to say?”. Fair enough, I got the hint that Tuesday’s message needs further explanation. With the benefit of some free time over the weekend, I’ll have a fuller breakdown for you on Monday. Have a nice weekend.
Be well,
Mike