The roller coaster ride for stocks continues. Companies bob and weave as volatility remains elevated. Under the surface of the market though, signs suggest weakness is a buying opportunity. It seems everyone is bearish. Headlines are awful with high inflation, energy worries, and rising rates. The mood is sour, which is typical of September downdrafts…. Read more »
Tis the season to be cautious. September is notoriously a negative month for stocks. History and data suggest one message: Investors should prepare for September volatility. After closing out a weak August, where the S&P 500 fell 4.2%, investors now face a seasonally weak time of year. Last week, I put together a midterm election… Read more »
As investors gear up for September, most expect a bumpy ride. History proves it’s a red month on average. That’s the bad news. The good news is Q4 tends to be a great time for stocks. And when it’s a midterm election year, returns are even better. Here’s your midterm election stock market playbook. If… Read more »
We’re witnessing an epic rally. The crowd is stunned. If you’re wondering when stocks will pullback, our data has clues. Today I’ll cover your sell signal to take profits. This morning our data did something we haven’t seen since December 2020. Our Big Money Index broke into overbought territory. The wave of stock buying has… Read more »
Markets tend to move from one extreme to another. After a brutal start to 2022, bulls are finally in the driver’s seat. Money is flowing into stocks. The last few weeks have seen stocks reprice in dramatic fashion. Since our oversold signal flashed on July 14th, the S&P 500 has gained 11.08%. In those 4… Read more »
To have a true rally in stocks, you need one ingredient: institutional buyers. Our data is seeing the biggest buying all year. This leads me to believe, a new bull market has started. Our data is clear as day. Risk is being added by portfolio managers. The recent shift in our data points to a… Read more »
Day after day stocks toss and turn. It’s signature bear market action. However, the undercurrent in our data is getting healthier. Market internals are improving. Believe it or not, there are positives shaping up for stocks. While major indices are deeply red in 2022, signs are pointing to more constructive action. Under the surface, selling… Read more »
When investors give up on stocks, there’s usually opportunity. That’s been our message the last month. Recently, our data is signaling less selling in stocks. Slowly the market is becoming more constructive. This could signal further upside for stocks. What a difference a week makes. Just as investors were digesting an awful June CPI print… Read more »
They say the trend is your friend. But sometimes trends reach extreme points, causing snapback conditions. The flow of money has been one way in 2022: out. But it’s not all gloom. Quickly we are reaching oversold conditions. The backdrop for stocks has been sour all year. We’re dealing with runaway inflation, war, extremely negative… Read more »
The year of the rotation continues. Signs are pointing to changing sector leadership. Volatility has been the name of the game in 2022. Comfortable portfolios eventually end up uncomfortable. The bear market has come for just about all areas of the market. The latest culprit has been Energy stocks. The recent bellwether for the market… Read more »