Asks John Clovis about the S&P 500 breaking below his cited line of 6900 and what it means.
Host
John Clovis
Confirms testing 6900 is a first warning of short-term trend deterioration. The December lows are more critical for risk management.
John Clovis
States his base case for the S&P is around 7600, but emphasizes this year is about rotation and risk management, citing midterm election volatility as a concern.
Asks what to look for given textbook expectations of downside chop/weakness in the middle of the year.
Host
John Clovis
Believes a correction may happen sooner, in early Q1, of 15-16% or more, then markets push higher. Breaking December lows would signal the start of a topping process.
Suggests tech looks vulnerable.
Host
John Clovis
Agrees tech looks vulnerable. Advises diversifying into low-beta stocks, which are at negative two standard deviations, and mentions lower-beta tech as high-beta tech wobbles.
Asks about the parabolic move in silver.
Host
John Clovis
Describes the silver/gold move as a wave-three advance. Predicts they will get hit hard, go down ~50%, but pullbacks should be bought for another higher high. Believes the commodity run will be done in a couple of years.
Asks if the bounce in oil is real.
Host
John Clovis
Needs to see oil build value above $61 to consider it. Key macro factor is the dollar at major support; if it breaks down, markets rally, but senses the dollar will rally and 'breathe for the fire as well'.