Opening Bell: Stocks have room to fall

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I usually love Tuesday – But today it’s shaking because it’s bumpier than usual. The market is looking turbulent, the cryptocurrency is still suffering from the recent decline and we saw another bear market yesterday.

That’s all – and I just realized I brewed decaffeinated coffee this morning.

I’m Phil Rosen, and today we’re going to explain why some analysts aren’t ready to buy the dip (yet).

You can hear me talk about the crypto recession on Insider’s The Refresh.

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Traders work on the floor of the New York Stock Exchange (NYSE) Spencer Platt/Getty Images

1. Tomorrow’s sell shouldn’t indicate a drop in stocks, As technical analysts say, they still have room to the downside. Monday’s move in the S&P 500 sent the benchmark index up 20% from its previous highs, pushing it firmly into the bear market.

But as Fairlead’s Katie Stockton explained, the S&P 500 is poised for another 8% drop after a “major collapse.”

“The momentum gauge is low and short-term oversold conditions are not widespread,” Stockton said.

Stockton is not alone in his prediction. Bank of America’s Stephen Suttmeier reiterated his bearish sentiment, noting that the S&P 500 has failed to clear some resistance levels.

“The inability to clear the resistance earlier and the lack of quick follow-up signals from the indicators increases the risk of the 3500 low towards the next support,” Suttmeier said.

Recession fears are making investors more and more anxious. But even after Monday’s deep losses, BlackRock analysts have broken down three reasons why the decline isn’t the right time to buy:

In other news:

Bitcoin fell in 2022, but JP Morgan has warmed up the asset. SOPA Images / Getty Images

2. US stock futures rose early Tuesday, After entering bear market territory yesterday. Meanwhile, the US dollar hit a two-decade high ahead of the Federal Reserve’s interest rate decision on Wednesday. Here are the latest market moves.

3. Today on deck: Monster Beverages Corp., Square and more all report. Also, the two-day meeting of the Federal Open Market Committee begins today.

4. According to senior US equity strategist RBC Capital Markets, history calls for a “fast and furious” market rally to be ready. According to Lori Calvasina, the stock could be at lower levels. These four types of stocks are expected to be the most profitable — including an overlooked group that are also the cheapest since the tech bubble.

5. Most prominent economists told the Financial Times that the US was in recession. Rising inflation would force the Fed to raise interest rates so dramatically that it would trigger a recession. The survey came after US inflation rose to 8.6% in May, beating expectations and putting more pressure on the central bank.

6. Bitcoin could recover “easily” and reach $100,000 in the next 24 months. Anthony Scaramucci says so because he believes technological advances and macroeconomic reforms will fuel a rally. Additionally, a Bank of America survey found that 91% of respondents said they plan to buy digital assets in the next six months.

7. Rich Dad, Poor Dad author Robert Kiyosaki oddly calls tuna the best investment you can make today. his reason? That gold, silver and bitcoin are not edible. Get all the details on Investing Writer’s Opinion.

8. This real estate investor made $1.5 million in 2021. Investor Todd Baldwin explains his strategy and why he doesn’t buy old buildings. He shares why he never buys a home with an HOA — and what he looks for when looking for a property.

9. Investors should buy these cheap, high-yield stocks. Evercore analysts said this group of companies trades at unusually low valuations and their dividends and free cash yields make them attractive. Check out the list of 23 stocks here.

market insider

10. Bitcoin hits an 18-month low and the cryptocurrency falls across the board. The world’s most popular crypto is now trading down nearly 65% ​​from last year’s record high of $69,000 as inflationary shocks drove investors out of riskier assets.

Stay connected with the latest market news throughout the day by watching The Refresh from Insider, a dynamic audio news story from the Insider Newsroom. Listen.

Curated by Phil Rosen in New York. (Feedback or suggestion? Email [email protected] or tweet @philrosen.) Edited (tweet) by Hallam Bullock @hallam_bullock) in London.

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