The “expect equity weakness” narrative has reached a feverous pitch. We’re now approaching the later stages of this pullback, and that means… Capitulation will ignite a violent equity rally. Fear is swirling. Doom lust is rampant. The crowd is bracing for a never-ending rise in interest rates. We’ve heard these seductive tales before. If you… Read more »
Capitulation is getting closer. That spells more trouble for stocks. It’s time to brace for impact. Look, fear is high right now. Interest rates are surging to levels not seen in over a decade. Pundits proclaim that the end of days is nigh. But here’s the deal. These scare tactics are devices to paralyze you… Read more »
Prepare for more downside. Two sectors are seeing forced selling. Turn on the TV and you’ll assume stocks are doomed. I don’t recommend watching the tube. But if you’re inclined to do so, here’s a brief rundown of the bear-tinged headlines you’ll find: Truthfully, the list goes on and on. Afterall, it’s the news. Pundits’… Read more »
Equities are suffering. Most stocks are breaking lower daily. In fact, our data signals the weakest breadth reading in months. Let’s be honest, watching stocks bleed day after day gets old. The muted -.9% month-to-date performance of the S&P 500 masks the reality of markets right now. While a handful of mega-cap Tech names thrive,… Read more »
Want to divide a room? Ask the crowd where the stock market’s heading. Want to inform a room? Equip them with cold hard data. As markets feel the pressure, here’s how to play the September pullback. They say stocks climb a wall of worry. That’s certainly the case with 2023. The 17% surge in the… Read more »
August is ending. I’d bet most investors would embrace a healthy change of scenery. I bring good news. History says a massive rally is coming soon. While on the surface that’s a welcome adjustment, there’s a caveat. Low liquidity Augusts typically spill over into seasonally weak Septembers. It’s a recurring playbook that we know oh-so-well…. Read more »
It’s hard to surf in choppy waters. Messy disorderly waves create a challenge to hang ten. The same goes for the stock market. Volatility is keeping major indices bobbing and weaving. If you’re waiting on the all-clear signal for stocks, keep waiting. Institutional money flows still point to near-term weakness. No doubt about it, it’s… Read more »
It’s amazing how timely seasonality strikes. Just when the crowd felt the coast was clear, a pullback ensued. When the tide goes out of stocks, they fall. They should just shut the markets down in August and September and reopen in October. Those powerful words were uttered by a portfolio manager friend of mine years… Read more »
The summertime blues are here. Right on cue, markets are taking a much-needed breather. While that typically elicits unhappy emotions, it’s not all doom and gloom. One rare signal points to big upside for energy stocks. Let’s rewind. Just 2 short weeks ago, I told you to prepare for a summertime pullback. The stage was… Read more »
Most investors eventually learn that stocks follow earnings. That’s a fact. However, when it comes to the best of breed outlier companies, earnings follow superstar stocks. Weeks ago, I had dinner with one of the largest hedge funds on earth. In our chat, we discussed markets, investor psychology, risk management, and more. These conversations are… Read more »