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 »
The first half of 2022 is pretty much in the books. The bear market has sent stocks tumbling. That doesn’t mean it’s time to give up. Nope it’s time to be proactive, by searching the landscape. While nearly all groups were sold hard this year, two sectors are primed for upside. It’s no secret, the… Read more »
Bear markets take their toll on everyone. But they eventually end. Capitulation forms bottoms. Last week I discussed how our data showed signs of capitulation. Well, it’s only intensified. Every sector is getting thrown out with the bath water. That’s the bad news. The good news is that selling eventually exhausts itself and new leadership… Read more »
Just when sellers seemed to take a vacation, they returned with a vengeance. The first signs of capitulation are here. I’ll admit, last week I expected a rosier near-term picture for markets. The data pointed to de-risking grinding to a halt. Since then, major selling fired up again. Macro headwinds continue to accelerate volatility: namely,… Read more »
Markets move like waves. Money is the current. Follow that flow and you’ll have an edge. Stocks are rising as massive selling slows. This article is accessible to Pro memberships. Continue reading this article with a Pro Subscription. Already have a subscription? Login. Read more »