In Thursday’s market update, Stephen Whiteside discusses the sharp sell-off triggered by the President’s recession warning. Stock index futures tumbled pre-market, with the VIX spiking nearly 17%. Smaller-cap stocks like the Russell 2000 saw steeper declines. Despite Wednesday’s buy signals on several stocks, Stephen advises traders to ignore them, as market conditions remain bearish. He highlights that short-term gains in stocks like La-Z-Boy are not enough to attract long-term investors.
Major index ETFs, including the Dow, S&P 500, and Nasdaq 100, remain on sell signals, reinforcing the broader bearish trend. While the TSX 60 generated a buy signal, Stephen advises against taking action until further confirmation. With institutional investors still in risk-off mode and major moving averages acting as resistance, he reassures traders on the bear side to stay disciplined. He emphasizes the importance of managing profits in bear ETFs as the market continues its downward trajectory.
Stephen Whiteside
Thursday, April 3, 2025
