Post US Market Update

Hope everyone is doing ok. It’s another tricky and volatile day in the US markets. Much of the blame goes to the uncertainty from the Middle East turmoil, another unnecessary event whatever reasons given. We just have to navigate as best as we can.

As I have stated earlier, technicals look ready for a bounce but as many will know, sometimes momentum takes a while to unwind. Markets are very oversold and sentiment is way in the basement.

However, my opinion is as such. I believe most names have topped as do many sectors and indices. The upcoming rally will be that - a bounce. It might be strong, enticing bulls anticipating a V shaped recovery, or it may be tepid. Unless the rally is accompanied by huge volume and momentum with all sectors participating and new highs achieved, I am leaning cautious and defensive.

Stay safe!