Relative Strength Conditions
Why Weakness in Commercial Real Estate May Signal Trouble
REIT investors are having a terrible year. The guiding principle of relative strength investing is to invest in what’s strong and avoid what is weak. The underlying principle of this approach is that assets that have been performing well in the recent past are likely to continue to do so in the future, while those…
Read MoreRelative Strength Update: Failing Bank Implications
After a tumultuous 2022, 2023 was off to a great start. Then banks threw a monkey wrench into the machine. Now the S&P has almost erased its impressive YTD gains, several banks are failing, and the prospect of a worldwide banking crisis looms… In times like these, it’s easy to become emotional and get caught…
Read MoreRelative Strength Update: Risks May Be Growing
There’s an old saying that the only certainty is uncertainty when it comes to the financial markets, and it couldn’t be more true. For Avalon, the North Star that guides us through the markets has been and always will be Relative Strength. For over 20 years, we’ve researched and tested the Relative Strength strategy we…
Read MoreAre You Prepared for Raising Rates?
The broader markets have been struggling amid inflation and interest rate fears. You can see it in the chart below – after peaking in early September, the S&P 500 has been in a downtrend that it’s been struggling to reverse. But that does not mean all areas of the market are seeing selling pressures. On…
Read MoreThe Data Shows These Stocks Have Tremendous Upside Potential
Fed Chairman Jay Powell’s recent comments assuring markets that the Fed was in no rush to raise rates appear to be having a calming effect on markets – and one particular group of stocks is set to take full advantage of the opportunity. Today, we’re going to break the market down and focus on that…
Read MoreDon’t Fall for This Massive Deception
A giant scam unfolding right now is sure to hit most traders by next month. I’m downright pissed off. Please excuse the language, but you must share my enragement with this historic transfer of wealth happening in front of our faces while our intelligence gets insulted. Facebook, Google, Apple, Microsoft, and Amazon are at it…
Read MoreGood News From an Often Forgotten Sector
We have been pretty vocal about the choppy environment we’ve been in since early February – which is classic year 2 behavior after a big recovery off a previous bottom. And we’ve made it abundantly clear we have seen deterioration of breadth – as fewer and fewer stocks are moving to the upside, with even…
Read MoreAre You Being Deceived?
The S&P 500 index has continued its path into record territory and that may lead many investors to believe “markets” are strong and now’s the time to jump in with both feet. “The fly in the ointment”: Although the S&P 500 index has once again hit new all-time monthly highs, it’s done so with more…
Read MoreMarkets Are Messy – Here’s the Proof
Check out the charts below – where we compare Offense to Defense. This is a tool to do a quick check-in on the overall health and direction of the current market. Here, we compare the strength of the S&P 500 index – representing the asset class of U.S. Stocks (growth) to two defensive asset classes…
Read MoreHere we go again…
Here we go again… if you listen to the media you’ll hear something like this “We’ve come too far too fast”… It’s just noise, don’t buy into it. The media can’t help themselves. But you can! Just months after the fastest decline in excess of 30% in market history, the major U.S. indices are either…
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