There is power in data. It’s emotionless and often at odds with loud blinking headlines. I learned long ago how distracting narratives rarely offer value. The flow of money tells the true story. Markets are facing a barrage of tireless worries: banking crisis, recession fears, debt ceiling, sour sentiment, and more. You’d think the world… Read more »
Consensus says stocks are doomed. Negative sentiment has investors spooked. Our constructive view has been betting against the crowd all year. So far, that’s been the winning ticket. The flow of money paints a strikingly different picture of investor appetite than the media headlines suggest. Consider the following: Just this week, J.P. Morgan released a… Read more »
Markets are faring better than feared in 2023. As cash piles build up near record levels, many investors are patiently waiting on the fat pitch to jump back in. It could come sooner than most expect. Let’s start with an interesting fact. The 2022 MLB season set a multi-decade record, clocking the lowest batting average… Read more »
Investing is rarely a cakewalk. In times of uncertainty, like now, groups tug and pull. Our data has been in a downtrend for well over a month, signaling a risk-off tone. However, new pockets of leadership are emerging. Our data signals a rush to safety as recession fears fuel sector rotation. If you’ve tuned into… Read more »
There’s an old saying on Wall Street, Bears make headlines, bulls make money. It’s true. Fear-driven headlines can easily get investors off course. Ultimately, quality stock picking wins in the end. I’m fortunate to have lived through a handful of market pullbacks: the Global Financial Crisis, Taper Tantrum, COVID-19, and more. Let’s go ahead and… Read more »
They say patience is a virtue. Slowing down and formulating a plan is useful in many aspects of life, especially the stock market. Patient investors could be rewarded soon as markets are quickly nearing a major buy signal. Consider this: Studies have shown that there’s power in waiting. Facing unsettling circumstances is part of life…. Read more »
Crisis. Capitulation. Carnage. Those “C” words describe recent market action as headlines of bank runs and more consume the news. Our data doesn’t dispute those feelings. Let’s brush aside headlines and focus on unemotional data. Investors are searching for a stock market bottom. It’ll come. However, our proprietary algos point to further downside near-term. That’s… Read more »
The seesaw market continues as investor worries linger. Our data still points to further equity weakness as stocks remain in a downtrend. But there are bright spots under the surface…more on that in a bit. Earlier this week I learned that Japan found 7,000 new islands. After a recount, geographers learned of these new landmasses… Read more »
The downtrend in equities continues. For weeks our indicators have pointed to softening prices, nailing the latest pullback in stocks. But there’s a silver lining. Selloffs eventually reach extreme points, prompting a high-probability bounce. Today I’ll make the bullish case for Utilities stocks. History points to a great risk/reward setup for the sector. Consider this:… Read more »
Markets ebb and flow like waves in the ocean. Eventually there’s a crest, which prefaces a downward pull. That’s where we are in the data. Stocks are facing overhead supply. Just 2 short weeks ago, our rare overbought signal triggered. It’s an indicator pointing to extreme appetite for stocks. It rarely lasts and often forewarns… Read more »