Is there more selling to come ?The PMs moved sharply lower today, but I think there is more to come. Primarily because the stock market has not yet broken hard. The hysteria over the AI propects has run its course and today's news that
Q2 GDP and Core PCE were above expectations means the Fed cannot cut rates anytime soon. The NASDAQ was down over 2% on Wednesday and lost more today. But, I think the dam is about to break sending all markets lower. We'll see. Predictions are hard to make, especially about the future. It would be interesting if Crescat would discuss the sharp moves down in the PMs tomorrow.
Excerpts:
NASDAQ - must hold coming up
NASDAQ has traded inside a big trend channel since October lows. We have seen tech move from the upper part to the lower part of the channel in basically two trading weeks. We crushed the 50 day yesterday, and are taking out the 100 day as of writing. 18900, give or take, is must hold area.
Wait a second
That huge pile of cash on the sidelines looks rather tiny. As a percentage of US equity market cap the cash on the sidelines has slid to record lows. BCA also writes: "The odds are that US stocks will soon peak, and a bear market will commence".