Cobra's Market View

Passive equity portfolio managers who rebalance back to benchmark weights monthly will be active today. The August return pattern ,with notable losses in Europe (DAX -20%, CAC -13% and FTSE -9%), and more minor losses from the rest of the world (S&P -6%, TSX -2%, SPI -3%), should result in buyin...

Despite an abrupt drop in prices at Tuesday's cash close for the ESU1 contract from yesterday's daily high (1218.50), prices have rebounded in the overnight session and have stabilized above 1215.00. The short-term price pattern remains constructive with an upside price target at 1232.00 but interm...

Despite an abrupt drop in prices at Tuesday's cash close for the ESU1 contract from yesterday's daily high (1218.50), prices have rebounded in the overnight session and have stabilized above 1215.00. The short-term price pattern remains constructive with an upside price target at 1232.00 but interme...

My proprietary TLT:TIP ratio is predicting more lows in the S&P. We have a ratio of 0.85 which has preceded every correction or consolidation in the market since 2003. It is now flashing a warning, so lower prices are ahead, although sometimes the market can levitate for a bit longer. The red v...