TheoTrade chief market technician Jeff Bierman weighed in on prospects for the stock market in this Business Insider story. Repeating some of the same messages he delivers to TheoTrade members, Bierman told Business Insider: “You’ve got to break Apple, Amazon, Microsoft, Tesla, and Google. They’re disconnected from their long-term valuations. Apple has a sequential drop in its sales and earnings and the stock just goes up. It makes absolutely no sense. In a bear market, growth dies,” he said.
Excerpt from the story:
“Bierman said the market bottom would also be signaled by higher levels of capitulation. The ongoing lack of capitulation is reflected in the CBOE Volatility Index, or VIX, he said. Bierman said the index would likely spike to “well above” 40, a level that indicates more extreme levels of bearishness. It currently sits at 27.54 and tends to rise when the S&P 500 falls.”
Professor Bierman’s prognosis for the market falls in line with other major analysts from Goldman Sachs and Morgan Stanley.
Read the full story in Business Insider (Premium): A former top TD Ameritrade technical analyst says stocks have yet to bottom as shares of several major firms remain ‘disconnected’ from reality — and warns the market could fall another 22%
