Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Cross Asset Strategy

For several weeks, we have been saying that a bear market rally could happen at any time, but the market keeps weakening. One of the challenges for the bulls is to put together two positive days, which they have failed to do. Another is to stage an upside breakout through the declining trend line.Investors should understand that this is a bear market, and bear markets behave differently from bull markets. Currently, the market is very washed out, and poised for a bear market rally. Should the S&amp;P 500 stage an upside rally from here, the logical first resistance level is the first Fibonacci retracement at about 2700, with additional resistance at the 50% retracement objective of about 2840.We suggest that investment oriented accounts move to a position of maximum defensiveness. Traders can try to catch the pending bear market rally, which has a tendency to be vicious in magnitude, but we suggest waiting for signs of bullish confirmation before entering the market on the long side.

For several weeks, we have been saying that a bear market rally could happen at any time, but the market keeps weakening. One of the challenges for the bulls is to put together two positive days, which they have failed to do. Another is to stage an upside breakout through the declining trend line.Investors should understand that this is a bear market, and bear markets behave differently from bull markets. Currently, the market is very washed out, and poised for a bear market rally. Should the S&amp;P 500 stage an upside rally from here, the logical first resistance level is the first Fibonacci retracement at about 2700, with additional resistance at the 50% retracement objective of about 2840.We suggest that investment oriented accounts move to a position of maximum defensiveness. Traders can try to catch the pending bear market rally, which has a tendency to be vicious in magnitude, but we suggest waiting for signs of bullish confirmation before entering the market on the long side.

This Is Insane! Where's the Bear Market Rally?