Morgan Stanley eating crow today?

Overnight

Overnight

"As such, risks to the July stock rally are building, and with peaking growth rates and extended positioning, the three-day slide that started Thursday will only get worse, Morgan Stanley analysts said.

“The selling has just begun and this correction will be the biggest since the one we experienced in February,” Morgan Stanley equity strategists led by Mike Wilson wrote in a note Monday. “It could very well have a greater negative impact on the average portfolio if it’s centered on tech, consumer discretionary and small caps, as we expect.”"

https://www.bloomberg.com/news/arti...than-february-is-building-morgan-stanley-says
 
Overnight said:
"As such, risks to the July stock rally are building, and with peaking growth rates and extended positioning, the three-day slide that started Thursday will only get worse, Morgan Stanley analysts said.

“The selling has just begun and this correction will be the biggest since the one we experienced in February,” Morgan Stanley equity strategists led by Mike Wilson wrote in a note Monday. “It could very well have a greater negative impact on the average portfolio if it’s centered on tech, consumer discretionary and small caps, as we expect.”"

https://www.bloomberg.com/news/arti...than-february-is-building-morgan-stanley-says
More...

Self-fulling prophecy. Well played, Morgan. LOL We will believe you when you show us your Long in VIX with no hedging.
 
Overnight said:
"As such, risks to the July stock rally are building, and with peaking growth rates and extended positioning, the three-day slide that started Thursday will only get worse, Morgan Stanley analysts said.

“The selling has just begun and this correction will be the biggest since the one we experienced in February,” Morgan Stanley equity strategists led by Mike Wilson wrote in a note Monday. “It could very well have a greater negative impact on the average portfolio if it’s centered on tech, consumer discretionary and small caps, as we expect.”"

https://www.bloomberg.com/news/arti...than-february-is-building-morgan-stanley-says
More...
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Will history maybe on thier side; SEPT slide is one of the best?? BUT tech + small caps are much stronger longer, than in the past. As far as small caps; they have always tended to be more of roller coaster, so they ,maybe right on that. IWM buy volume is weak, but price is OK uptrend.I wish MS market makers well; good buy + sell volume.:cool::cool:
 
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One of the more curious developments since the reporting season began has been lagging value stocks -- those priced cheaply to their assets. Typically, strong earnings reports spur investors to bid up underpriced stocks.

Yet there are some signs that a new leadership could emerge. Value was able to recover some of its losses on Monday, gaining nearly 0.6 percent, the most among 10 factors tracked by Bloomberg. Over the past three days, value has beaten the strategy of chasing winners by 1.8 percentage points, the best outperformance in eight months.

Analysts like JPMorgan’s Marko Kolanovic point to signs of a value rally that would pick up the slack in momentum stocks.

However, the concern goes beyond the day-to-day gains and losses among value stocks. Correlations between all investment factors are on the rise, according to Bernstein, increasing systematic risk for active investors. Linkages may only continue to tighten as the earnings season concludes, as investors pay more attention to global threats.

Fraser Jenkins, who recommends reducing active risk.

So if the markets are highly correlated among factors how do you "actively reduce risk"?
Sell and sit on the sidelines? I'm speaking about the HF and other large investors.

I think we are already seeing a rotation out of a really crowded tech trade (FAANG) and into value. The first 2 paragraphs I posted from the article appear to be at odds.
 
Arnie said:
One of the more curious developments since the reporting season began has been lagging value stocks -- those priced cheaply to their assets. Typically, strong earnings reports spur investors to bid up underpriced stocks.

Yet there are some signs that a new leadership could emerge. Value was able to recover some of its losses on Monday, gaining nearly 0.6 percent, the most among 10 factors tracked by Bloomberg. Over the past three days, value has beaten the strategy of chasing winners by 1.8 percentage points, the best outperformance in eight months.

Analysts like JPMorgan’s Marko Kolanovic point to signs of a value rally that would pick up the slack in momentum stocks.

However, the concern goes beyond the day-to-day gains and losses among value stocks. Correlations between all investment factors are on the rise, according to Bernstein, increasing systematic risk for active investors. Linkages may only continue to tighten as the earnings season concludes, as investors pay more attention to global threats.

Fraser Jenkins, who recommends reducing active risk.

So if the markets are highly correlated among factors how do you "actively reduce risk"?
Sell and sit on the sidelines? I'm speaking about the HF and other large investors.

I think we are already seeing a rotation out of a really crowded tech trade (FAANG) and into value. The first 2 paragraphs I posted from the article appear to be at odds.
More...
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WELL, they have been reducing buy volume in FB for years.LOL I did not get upset when FB broke thier confidental agreement , but market may be did ?? LOL
AMZN +QQQ still is strong on 3 year candlechart, but i ex
pect some sort of bear move by end of SEPT-NOT a prediction.:cool::cool:
 
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