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 »
Stocks are off to a strong start in 2023. The S&P 500 has jumped 8% YTD, mainly powered by growth-heavy groups like Technology and Discretionary. The ongoing surge in stocks has pushed our Big Money Index into overbought territory, which could worry some investors. But today’s message is simple: Don’t fear an overbought market. Look,… Read more »
You can feel the excitement in the air. Portfolios are springing back to life. However, near-term caution is warranted: Stocks are officially overbought. When you view the world of investing through the lens of data, it’s important to pay attention when warning signs flash. Last week our data signaled some of the largest buying in… Read more »
“Just when the caterpillar thought the world was over, it became a butterfly.” – Anonymous That’s the echo of the markets lately. Just as the bears unanimously settle on impending market doom, a vicious rally is born. Excessive pessimism breeds opportunity. Our data signals extreme appetite for stocks in 2023. Keeping a positive outlook on… Read more »
I’ve learned to never get surprised at market action. Right when consensus decides that a sector is set for doom, value hunters pounce. New uptrends emerge. That’s how markets work! Today, we’ll cover the changing sector tides and zero-in on new signs of life. One look at our data and you’ll see that investors are… Read more »