Where Does The Market Go From Here? “There May Be Some More Downside Ahead Of Us”

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.

Transcript

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.