Vulnerability in the stock market, feeling "extremely bearish"

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<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Earlier this week, & nbsp;Morgan Stanley Quarterback Mike Wilson said on CNBC Fast Money that the stock market data-reactid = "31"> Earlier this week, Morgan Stanley strategist Mike Wilson told CNBC Fast Money that the stock market was still vulnerable to a short-term fall.

Although the stock market posted extreme levels of bearish sentiment and a sell-off throughout December 2018, which could be a sign for setting a floor, Mr Wilson said the fundamentals were still lacking in the market.

When will the stock market be at its lowest?

According to Wilson, market fundamentals remain in disarray and Wall Street is concerned about market performance.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "He m said: "data-reactid =" 35 "> He m said:

Evaluation, we have reached our goal. We have also achieved our goal in terms of sentiment and position, it's really bearish, extremely bearish. It's as bearish as we've seen. What we do not have yet is that the basic picture is always messy. All that worries us, the market all year begins to appear.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Given the intensity of the sale of the American stock market and several uncertainties, including the trade war with ChinaWilson explained that, in the same way that the bear market had been extended in the last two quarters of 2018, it could be a relatively long time to set a trough in the stock market. "Data-reactid =" 38 "> Given the intensity of the Wilson explained that, in the same way that the bear market had been extended in the last two quarters of 2018, it could take a relatively long time to establish a Hollow in the US stock market and several uncertainties, including the trade war with China stock market.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Several problems such as the poor performance of Apple, the reluctance of the Chinese authorities to compromise on certain areas, such as industrial policy, and many internal factors have everything is clear "data-reactid =" 39 "> Several problems such as Apple's poor performance, the reluctance of the Chinese authorities to compromise on certain areas such as industrial policy and many internal factors have been highlighted all is clear on the stock market.

"Although they may not have missed Apple, their magnitude was a surprise. If Skyworks is not a surprise, it's not necessarily good news. In our opinion, the bear market that took place last year will be a slippery bottom. Not everything goes at the same time, but I guess it will be first in and first out. What lets us in will probably lead us, "added Wilson.

What are the fundamentals?

Strategists such as Wilson are reluctant to state that the US stock market is at a low ebb due to the decreasing scale of the earnings revision, which refers to the number of companies in the S & P 500 revising more the future earnings relative to companies making revisions based on lower earnings.

It's growth. In the end, it's the profit. Are we going to have accelerated growth in profits? When does earnings growth go to the bottom? So the two things that I'm focusing on most now are the earnings review width. This is the reason we were negative last year. It has declined sharply. It's 8% negative.

As long as companies lower their earnings expectations and revise their earnings, Morgan Stanley's strategist suggested that it was too early to safely state that the stock market is perfectly clear of any imminent short-term danger .

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Dow Jones has added 500 points since Jan. 8, but has yet to regain its December levels of between 24,500 and 25,000 points. "data-reactid =" 54 "> The Dow Jones has added 500 points since January 8, but it has not yet regained its December levels at 24,500 at 25,000 points.

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