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.
- 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.
- 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@example.com, (404) 770-7637, or schedule a call here.