The Stock Market is Looking Better

The Stock Market is Looking Better But…
Caution is Still Advised.

Hello Gaugers. It was a good and profitable week for those long in the market these past 5 and even 9 days since the beginning of the year.

I have read one article and commentary after another stating that we’re surely in the beginning of a new bull market. Here are just a few of the comments (and charts) I have seen that state the S&P is behaving better and “this time is different”… But is it?

January is historically the best month during a pre-election year for stocks, up 4.1% on average. This bodes well for the whole year.

Inflationary pressures have subsided. Look at Gasoline, the U.S. Dollar and interest rates. They are all giving the stock market some wind at its back (however, the equal weighted S&P has not gone anywhere – see chart below).

Actually, I could go on and on because in a decent up trending market, similar to what we have experienced in the past 9 trading days, everyone wants to get on board.

It feels nice, and for a change, the positive bias is welcome.

Plus, most of our algo-based strategies are ripping higher, and we are thrilled about that.

For example:

Large Cap Leaders +8.4% (learn more with last week’s webinar replay)
GEMS +6.6%
NASDAQ All Stars 7.9%
ETF Sector Plus +8.9%

Investors feel a sense of relief, and positive market daily closes put a smile on our faces and a little more energy in our step. However, it most likely will not last.

Click here to continue reading and learn…

11 signs that maybe the worst is not yet over for the stock and bond markets
Signs the economy may be in for some rough sledding in 2023
Which of MarketGauge’s Big View indicators are flashing risk-on (bullish) and risk-off conditions

If you’d like to learn more about MarketGauge’s strategies for DIY investing or done for your asset management, please contact Rob Quinn, our Chief Strategy Consultant for a private, no obligation conversation. Rob can be reached at [email protected], (404) 770-7637, or schedule a call here.

The post The Stock Market is Looking Better appeared first on Southern Boating.

Source: https://southernboating.com/marketgauge/the-stock-market-is-looking-better/