Market News
Watch Out for Bear Traps
I’ve been around long enough to have navigated through my share of Bear Markets. I was first rudely introduced to the Bear during the infamous Tech-Wreck. And I can tell you from personal experience, that it was quite a learning experience – an expensive one at that. But maybe those are the best lessons… There…
Read MoreAre Stocks Ready To Bounce?
We’ve had our eye on the 3800 level in the S&P 500 as an area of logical support. Assuming the index finds support at 3800, it sets up the possibility for a bounce-back up to the 4200 level before running into any serious overhead resistance. At the end of last Friday’s trading session, the index…
Read MoreAre You Recession-Ready?
Are we headed for a recession? The growing evidence that suggests the answer to this question is, unfortunately, yes. U.S. GDP fell at a 1.4% annual rate in the first quarter – another quarter of negative growth would officially mark a recession. Those who think a recession can be avoided are of the groupthink that…
Read MoreBuy the Dips or Sell the Rallies?
Earlier this week, I put out a short video addressing current market conditions using price, breadth, and Relative Strength ratios as our guide. The reasons we had moved all but a small portion of investor funds to the safety of cash are still very much in play, and based on the data, we believe the…
Read MoreNo Banks, No Bull
Regardless of daily headlines about the current direction of equity markets, what the Fed is thinking, or what Elon is doing, there are a few tried and true rules that remain pretty consistent. And one of those rules is that without banks, there are no bull markets. That doesn’t mean banks have to be the…
Read MoreMost Investors Aren’t Prepared for What Comes Next
Thus far 2022 is giving investors very few places to hide… Friday’s free-fall capped the worst month for the S&P 500 since the COVID crash in 2020 and the NASDAQ just experienced its worst month since 2008. There are 10 index charts here – pick one, any one – not one of them is in…
Read MoreWhen Seasonal Patterns Fail, Take Notice
March’s epic bounce in the S&P 500 and NASDAQ offered promise – that is, until it didn’t. With all the noise, both the S&P 500 and NASDAQ are right back where they were a month ago, and heading towards the March lows. But why? Both indexes have given back nearly all of March’s gains and…
Read MoreStay Cautious, Investors
Sometimes it’s good to be long, sometimes it’s the time to be short… And other times, it’s time to go fishing. Let’s take a look at some key takeaways from today’s markets: Lack of follow-through evident beneath the surface Risk-off environment persists Defensive sectors gaining strength Last month’s equity market bounce was impressive at the…
Read MoreMarkets Don’t Go Up Forever
Trees don’t grow to the sky and markets don’t go up forever. Over the course of a lifetime, an investor is likely to experience both bullish and bearish cycles. As defined by Investopedia: “A bull market is a market that is on the rise and where the conditions of the economy are generally favorable. A…
Read MoreStart Sharpe(ning) Your Investment Skills
Good portfolio management begins and ends with risk management. In last week’s ADAPT, we discussed the importance of understanding maximum drawdown, a key stat that can determine the likelihood that an investor can stick with an investment strategy through both good times and bad… And why it’s important to keep that number as low as…
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