Relative Rotation and Relative Strength Can Guide You During Times Like This

Relative Rotation and Relative Strength Can Guide You During Times Like This

Last week I wrote about sector rotation away from the Mag-7 stocks into a broad-based bullish move by the rest of the market. This week I want to show you a few methods of how you can witness sector rotation and be on the right side of these market moves. This can be done using relative rotational graphs and the relative strength indicator.

The Great Sector Rotation

Rate Cut

As more economic indicators are pointing to inflation coming under control, the Fed started to signal that a rate cut may be coming this year after all. I’ll be the first to admit I thought they’d steer clear of the September time frame to avoid being accused of being political, but it seems like the Fed, U.S. Politicians, and investors are on a collision course for September. As a precursor to the main event, we see how quickly the markets can react and throw previous stock favorites out to the curb. Here’s what you need to know and how you can benefit from the great sector rotation

Trend Following Simplified: Using “PriceTimeFilteringBarCount” for Better Trades

Trend Following Simplified: Using “PriceTimeFilteringBarCount” for Better Trades

Schwab recently released some improvements for their desktop platform, ThinkorSwim. Aside from being able to select a GTC order as your default, one of the other improvements came in the form of a new trend indicator. Sure, the indicator’s name should have gone through some type of user experience group or a focus group. Still, naming aside, I will show you what you need to know and how you can use the new, “PriceTimeFilteringBarCount” indicator.

S&P 500: Are We Headed for a Bear Market or a 5-Year Bull Run?

Bear Market or a 5-Year Bull Run?

Don’t look now, but the S&P 500 is up over a staggering 50% since October 2022 and is currently up over 15% in the first half of 2024. At this point, it’s no surprise that the bears are peaking out from their slumber, and news articles are using fear-mongering to warn of impending doom. And yet other analysts are touting this is just the beginning of a five-year bull run. Who is right? What should you expect in the second half of the year? I have what you need to know and what you need to watch out for.

Fireworks and More For The Stock Market

Fireworks and More For The Stock Market

The Fed has been encouraged by the barrage of weakening economic news, and so once again investors have found that to be a green light to be bullish, and that optimism sent the market to fresh highs, right before the market closed for the U.S. holiday. While bad economic news may mean bad news for the market one day, that time isn’t yet, but it may be sooner than you think. I’ll show you some charts that you need to know now.

Investors Are No Longer Fearful, But Should They Be?

Investors Are No Longer Fearful, But Should They Be?

Underwhelming earning reports and other economic data are showing that the Fed could get the data it needs to finally consider cutting rates sooner than later. However, as my colleagues have said many times, eventually bad news is going to be just that – bad news. For now, investors seem hopeful that a weakening economy will lead to cut rates that will, in turn, boost the economy back higher while keeping inflation at bay. So, how bad is the data coming in and what can you do about it to keep your portfolio safe?

Quarter-End Reflections: Seasonal Patterns and Market Predictions

Quarter-End Reflections: Seasonal Patterns and Market Predictions

It may be hard to believe, but we’re nearing the end of another quarter in 2024, which means volatility should pick up with the return of earnings season. We’re also nearing a presidential election in the U.S., but first, let’s not forget inflation and the Fed. Before we get too far ahead of ourselves, let’s take a look at a few of the items impacting the market now, and see if we can tell where the market may be heading.

Don’t Let the Quadruple Witching Scare You

quadruple witching day

Four times a year, once each quarter, we are met with what is called a quadruple witching day, and no it has nothing to do with ghouls or goblins. Yet some investors stay away from the market even though there are plenty of opportunities if you know what to look for. Let’s discuss what the day is, what typically happens before and after the day occurs, and how you can profit from it.

Market Ignores Hawkish Fed, Cheers CPI

Market Euphoria

The Fed rate frenzy is almost getting as hyped as seeing Roaring Kitty return to trading GME after years of being silent. All investors watched as the Consumer Price Index (CPI) numbers signaled ongoing disinflation. While stocks shot higher on Wednesday, investors ignored the Fed presentation later in the day. That was a mistake as the Fed laid out a troubling scenario.

Let’s start with the good news. Consumer Prices are rising less than the consensus range. For example, the year-over-year number was expected to increase by 3.4%, whereas the actual CPI number came in at 3.3%.

Is It Time To Get Into Value Investing Again?

Value Investing

Mega-cap tech stocks continue to dominate the market, but beneath their success lies a growing unease among investors about the Federal Reserve’s interest rate policies. While these tech giants boast substantial cash reserves and can withstand a “higher for longer” strategy, the average S&P 500 stock is more vulnerable than ever to rising yields. Although the S&P 500 is up for the year, not all companies are sharing in the glory.

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