What the stock market is doing is playing in what could be a protracted trading range, says technical research from MKM Partners. But watch out, ghosts of 2008 could abound. Extreme bearishness led to 2008 trading range short rally, but bulls should not get their hopes up Two weeks ago, market pessimism reached an extreme – a key bullish sign. “Bearishness and downtrends often go hand in hand, just as optimism often reigns in uptrends,” MKM Partners Chief Market Technician Jonathan Krinsky wrote in a Feb. 21 report titled “Equilibrium… For Now.” Does this mean that a bottom has been put…
Stocks Might Get Stuck In 2008 Trading Range
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.