Systematic Trading Strategies and Next Level Trading Setups
The Composite Breadth Model improved, but remains negative and the market is at a critical level. A critical level means we are at a moment of truth or a make or break point. One more push higher would turn the CBM positive and trigger a big wedge
2023 is starting with a bang as the high-beta groups outperform. High-beta groups are the same as risk-on groups and offensive groups. The 2022 leaders,
The S&P 500 has been trending lower since the peak in January 2022, but this decline could be a long correction after a massive advance. The pattern taking shape and
SPY Has a Clear Level to Beat (Free) Read More »
The stock market has a long-term bullish bias and the monthly return metrics reflect this positive bias. Chartists looking for a seasonal edge can compare benchmark metrics with the monthly performance numbers.
Relative Seasonality and A Monthly Equity Curve (Free) Read More »
This is a short update covering the S&P 500 SPDR, a bearish breadth signal and two ETFs. Stocks were hit pretty hard on Wednesday with all sectors moving lower. In an interesting twist, the low volatility sectors, Utilities (XLU) and Consumer Staples
The Composite Breadth Model remains negative, but the market is quite split overall. The 5-day SMA for the S&P 500 is very close to crossing above the 200-day SMA, the percentage of stocks above the 200-day SMA is strong and yield spreads are narrowing. There was also a move
The stock market is quite mixed at the moment. The Composite Breadth Model is negative and the 5-day SMA for the S&P 500 is below the 200-day SMA. The percentage of stocks above the 200-day SMA indicators, however, are showing strength within the broader market because they are above 50%. SPY is nearing a moment
Trevor Lawrence put in a performance for the ages in the AFC Wild Card game on Saturday. Chapeaux! Lawrence started the game with four interceptions in the first half, but kept on throwing
Trade Like Trevor (Free) Read More »
Today’s report will dive into monthly seasonal patterns using benchmark metrics and equity curves. The stock market has a long-term bullish bias and the monthly return metrics reflect this positive bias.
The Composite Breadth Model remains negative, but the breadth indicators show a split among stocks with roughly half above their 200-day SMAs and half below. The Fed balance
Stocks, bonds, the Euro and metals started the year with a bang. The S&P 500 SPDR (SPY) surged 2.3% on Friday and is up 1.42% year-to-date. The 20+ Yr Treasury Bond ETF is outperforming SPY with a 6.2% advance and the DB Base Metals ETF surged over
Today’s report will cover some seasonal patterns at work in the stock market. The Santa Claus Rally just ended on Wednesday and the eight day turn-of-the-month ends on Friday. Historically, these are short-term bullish periods. The fourth
The Composite Breadth Model turned negative on December 19th and remains negative as we start the new year. There are some pockets of strength within the S&P 500, but these are overshadowed by relative weakness in large-caps.
We start the New Year with a negative Composite Breadth Model and bear market environment. 2022 was the year of the whipsaw and largely a year to forget. Nobody knows that 2023 will bring, but the bear market environment indicate that risk remains above average for
The Composite Breadth Model turned negative on Monday and the Market Regime is back to bearish. 2022 was year of the whipsaw for the CBM, but whipsaw periods are normal for trend following models and part of the overall process. AAA spreads
Today’s report will start with a stock market overview with analysis of the big three (SPY, QQQ, IWM) and three key industry group ETFs (SOXX, XRT, ITB). Housing is holding up, but the other five broke down and the weight
Today’s update starts with the big three (SPY, QQQ, IWM) because they broke down over the last few days and their breakdowns signal a continuation of the long-term downtrends. Moreover, the Composite Breadth Model turned
The S&P 500 SPDR (SPY) surged from mid October to early December, but this advance was considered a counter-trend bounce within a bigger downtrend. In fact, the S&P 500 SPDR (SPY) reversed
It’s Like Déjà Vu, All over Again for SPY (Free) Read More »
The weight of the evidence favors the bulls because the Composite Breadth Model is positive, but the stock market is as divided as ever. Today’s report will show three different ETF groups: the lead group holding support, the weak group
Despite some volatility around the CPI report, there is no real change in the market situation. The Market Regime for stocks is positive because the Composite Breadth Model is at +1 and yield spreads are narrowing. The intermarket relationships since
