The below is an excerpt from tonight's edition of The Closer, sent to Bespoke Premium and Institutional clients each night along with graphs, analysis, and timing models for both single name equities and the market as a whole.
The worst week in US equities since 2012 is finally over, and the ocean of economic data reported this week is finally done. The dollar is higher, and it’s about the only thing as rates, credit, and commodities all sold off sympathetically with the huge rip in equity volatility. While the massive selloff (relative to recent docile trends in volatility) of Thursday has taken us much closer to a moderate pullback of 5% or a 10% correction, we’re not terribly concerned about the bull market in US equities at present. Earnings chugs along and remains positive, behind all the noise; the price to earnings ratio for large cap equities is now flat YTD.