Broad Market Outlook
Was quite the volatile week with the FED news that left the market trading in a 5% plus range and closing the week testing its recent lows. Now mostly anyone discussing the markets all have a similar opinion that we are headed lower. Now in the short term shaking out the 400 psychological level is probably more then likely in the cards however from a risk reward standpoint down near these lows often give us the best risk reward.
When SPY was breaking 460 everything market wise looked amazing and perfect yet the risk reward actually was the highest when sky's were blue. Yet when its raining in the market, those are often the best times to find deals, yet most are scared to go outside and look for them.
When the markets look perfect the risk seems small and the upside seems endless when the opposite is often true. While when the market looks like its dead, often there can be spots to put on risk.
We are already 15% off highs for the year, 12% off the highs of the recent range. Being able to give the market 5% of room down here vs the recent lows buying on the way up through 415/430 could give us great stock as most are too afraid to step through the puddles to find opportunities.
Individual name wise seems that support buy backs should start to come back into style given the pull back from last week while being quicker with our executions will be key. If the support buy back or any buy for that matter is not working out immediately (day 1), there shouldn't be even a seconds thought of giving it room or to the proper out.
Macro Rotation Outlook