My partner Cory handed me some chart updates this morning, showing the technical damage caused by the sell off in stocks the past couple of weeks. While we are rallying so far today (and interim green days are to be expected) major markets look vulnerable from current heights. The pre-LTRO levels of late last fall (tested in Nov and Dec 2011) would be the first major downside test, around 11,500 on the TSX and 1,100 for the S&P. If that level held on a third test it could be short-term constructive, but if prices failed there it would leave the door open for a significantly lower test for stocks this year. Time can only tell.
David Murrin, CEO of Emergent Asset Management, appeared on CNBC Europe to discuss some of the key reasons for near-term risks: “We spent the first quarter rallying in what I would call a corrective rally and that is finished. I think the peak that we had at the end of March is the equity peak for the year and we are now into the more impulsive declines.” Here is the direct link.
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I had the wonderful insightful pleasure to speak with Cory Venerable on the phone several weeks ago. I was inquiring about letting VP take over the management of my retirement accounts. And I must say I was rather impressed. He laid it on the line much like Danielle Park does. Watch it, be patient, you will get your chance at much lower prices, but you just must be patient and wait.
Great company, and there are only five of them! Yep, only five employees. Talk about a neat little niche. I’m game. You’ll be hearing from me in the not-to-distant future. I really do want to see the market catapult into Hell and listen to the blog.
Thank you all again. I feel like you are my extended family. Thank God I don’t golf.
Yes the venerable Venable …… I remember him years ago on ROB-TV…before you did an ABBA ….. maybe you could let him out sometime.
Thanks for the comments…
We strive and take great pleasure in helping those seeking a balanced & critical presentation of what may be relevant in the world of investment management. Danielle puts incredible amounts of thought & effort behind every post even if it means the critical viewpoint may upset the reader’s homeostasis.
As far as media is concerned, I’m not much for self-delusion and realized early on that my core competency does NOT lie in public speaking or television. There is a requisite set of skills required to be of USE that very few people possess, mostly due to an inability to give concise, no-spin commentary in a sound-bite driven world while still being relevant. Ms. Park as it happens has all the requisites, including an unobstructed view from a place where the only bias is the safety and well-being of the client. A tall order for anyone in an industry rife with purveyors of risk and few managers of it.
Full disclosure…I have the great fortune to call her “Partner” in both work and life!
Have a Great day. C