Benzinga's Premarket Prep guest Jim Tassoni, CIO at Arbor Wealth Strategies, gives us his market outlook and talks about where we may go from here.
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00:00You know, it's, again, we talk about,
00:02it's great to kind of talk about what happened,
00:05but I think for all of us traders, myself included,
00:08it's much more important to kind of have an idea of,
00:11or at least a thought of where we may go from here
00:14or how we might want to position ourselves.
00:17And so I found another great chart that kind of looked at,
00:20over the past 25 years,
00:23when we've had significant blowouts in these spreads
00:27in terms of the Japanese yen, U.S. dollar spread,
00:31which has been a trade that has been put on for years.
00:35It gets attention at different, various points.
00:38And you can see we had similar types of moves
00:41in this spread back in 02,
00:45in that kind of 08, 09 period,
00:48again in 11, and then right at,
00:51right around the COVID time.
00:53And in each one of these cases,
00:57and it may be a little difficult to see here
00:59because it's a log chart for the S&P,
01:02but the total downswing in the S&P 500 was around 15%.
01:10So you can say we're maybe six, seven, 8%.
01:13Now we bounced back some off of the all time highs
01:17when we whooshed down there.
01:20But in my opinion, I would still tread very cautiously here.
01:24Now, if you're trading swing or day,
01:26I'm not saying don't take any longs.
01:29But what I am saying is based on this information,
01:34we need to be careful and cognizant
01:36that there could be a little bit more pain.
01:38And it may be wise to wait for some really opportune,
01:42opportunities for lack of a better word,
01:45in various stocks and positioning.
01:48Because I think between you and I,
01:51there may be some more downside ahead of us.