Bears Everywhere – Stock Market Outlook Midday Analysis for Mon Mar 7 2022

The futures early morning today pointed to a lower day but as the opening approached, the futures improved. That made no difference. From the open, the trade has been basically buy SPY put options or Ultra Bear ETFs.

The outlook is still poor and as the Russian invasion of Ukraine shows no signs of abating, the sanctions continue to squeeze the Russian economy but also the global economy. The sanctions are affecting many aspects of the global economy, not just oil and gas as many companies are pulling out of Russia and Belarus or closing down operations. Everywhere from credit card companies, entertainment companies, tech companies, banking and finance, clothing, beverages of all kinds and much more are being affected. This continues to weigh strongly on stocks and investors as they try to decide where true value lies for equities in the face of the sanctions.

Let’s look at the stats as markets head out of the lunch hour.

New York Stats:

Volume is well below average at 3.6 billion shares traded.

New 52 week lows are at 600 which is rising while new highs are 200, which is higher than Friday at this time.

Volume is 68% to the downside which is bearish and worse than Friday.

72% of all stocks are falling which again is worse than Friday at this time.

The SPX is heading into a bear market.

NASDAQ Stats

Volume is also well above average at 3.3 billion shares traded.

New 52 week lows are 625 which is much higher than Friday at this time. New highs are 69 which is worse than Friday and very bearish. The NASDAQ is in a bear market that deepens.

58% of all volume is lower which is a bit worse than Friday at this time.

60% of all stocks are moving lower which is worse than Friday at this time.

Outlook:

Both indexes are in bear market territory. The NASDAQ is worse off than the broader SPX but both are very bearish. Continuing to hold SPY Put options or ultra bear ETFs continues to generate significant returns.

TSX Composite Index – Canadian Stock Market Outlook

For those who follow the smaller Canadian Market, the TSX is down just 9 points at 21,393.41.

Volume is above average at 344 million shares traded. Of volume 58% is to the upside which is better than Friday at this time. 38% of volume is to the downside.

60% of stocks are falling while 28% of stocks are rising.

Summary

The outlook is still negative for the TSX although with oil stocks, financials and commodity stocks making up such a large part of the index, the TSX itself is holding up nicely while other markets around the world are falling. The heavily laden commodity stocks on the TSX are holding the index up. Bank stocks, while weaker today are still holding on nicely. But as you can see from the 60% of all stocks falling, there is underlying weakness.

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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