Trend-Momo Bull-Bear ETF Strategy (part 10) – Performance Update, Perspective on June Drawdown, First/Last Day of Week Entries

Today’s report will update Dow Theory analysis from last month, recall an old adage from Marty Zweig and show that only two assets are holding up. The Dollar remains very strong, which means the opposing

The Composite Breadth Model remains in bear mode, yield spreads show stress in the bond market and the major index ETFs are in downtrends. Other groups are not picking up the slack because most precious metals, industrial

Stocks became oversold after a sharp decline in June and the bounced to varying degrees. Some of these bounces were quite sharp (ITB, IBB) and some ETFs simply consolidated (SPY, KRE). Almost all ETFs are in downtrends and this means the bounces are considered counter-trend

After becoming very oversold in mid June, the major index ETFs are in the midst of oversold bounces or consolidations over the last three weeks. Predicting the extend of a bounce is tricky, but the current bounce since mid

Cracks in the stock market began to appear in the second half of 2021 and spread to large-caps in early 2022. Defensive groups within the stock market were holding up, but got hit hard in June. Industrial metals and agricultural commodities were holding

My screen for today’s price action is a sea of red right now. Stock futures are modestly lower, energy futures are lower, gold is slightly lower, industrial metals are sharply lower and agricultural commodities are sharply lower. The US Dollar Index is the only thing higher and it is trading at a new high

Today’s report to put trend and volatility together so we can identify the best conditions, the worst conditions and the questionable conditions. Most of us know that current conditions are the worst for stocks because we are in a bear market with high volatility. We will chart volatility to show when it is deemed high and

Weakness is widespread throughout the stock market, and other markets. The Composite Breadth Model is and remains bearish. fewer than 20% of S&P 1500 stocks are above their 200-day SMAs and yield spreads show stress in the credit markets. Almost all stock-based ETFs are in downtrends and most of the alternative ETFs are also in downtrends (bonds, gold, silver, the

Stocks bounced the last five days, but these bounces are considered counter-trend moves within bigger downtrends. One of these counter-trend moves will result in a trend reversal, but this is not the case yet because the weight of the evidence remains bearish for stocks. The first indicator window below shows

As noted in Tuesday’s report and in Wednesday’s video, the majority of ETFs in the Master List (274) are in downtrends. There are a few groups holding up, but even energy and agriculture were hit with selling pressure here in June. Mr Market is dazed, confused

The major index ETFs and big sector SPDRs extended their downtrends and recorded fresh 52-week lows over the last few days. New lows were also seen in most tech and consumer discretionary ETFs. The Composite Breadth Model reflects the broadness of downside participation and widening yield

There are a lot of downtrends out there and not just stock-based ETFs. The vast majority of stock-based ETFs are in downtrends with Trend Composite values in negative territory. ETFs related to industrial metals, precious metals, bonds and non-Dollar currencies are also in downtrends

Today’s commentary will dive into Dow Theory and show some overlap with Elliott Wave. We will show the phase/wave counts for the last bear market and then make an attempt to label the current

The major index ETFs extended their downtrends with a vengeance over the last five trading days. It was a most exceptional period because almost everything declined the last five days – and I do mean everything. 52-week lows expanded

It was a “sell everything” moment the last four days as stocks, bonds, commodities and non-Dollar currencies declined. The Dollar Bullish ETF (UUP) rose 2.82% the last four days and the Corn ETF (CORN) was up .46%. Those are the only two ETFs

Small-caps are outperforming large-caps over the last one to two weeks because large-caps stalled and small-caps continued higher. Even so, I am not following the siren song of small-cap relative strength and am more concerned with short-term relative weakness in

The major index ETFs are in the midst of a bounce, but this bounce is still considered a bear market bounce. The bigger trends are still down for SPY and QQQ, the Composite Breadth Model is negative and yield spreads are elevated. Despite bullish breadth thrusts in late May, the percentage of stocks above their 200-day SMAs

Today’s report will start with the Composite Breadth Model and some words on the Market Regime because this is the dominant force at work for stocks and stock-based ETFs. Some stock-based ETFs are featured in this report because they are either in uptrends on the price chart, have positive Trend Composites or held their January-March lows (did not break down).

Today’s report starts with bonds, the Dollar and gold. I am not, however, going to tie moves in one asset to movements in another. There are some relationships at work, but relations and correlations change and sometimes do not work out as expected. Instead, I will simply analyze