Special Bulletin: August 10, 2023 (12p Update)

The “Not So Magnificent Seven”

But “beware the tech behemoths!” We made that statement in our last post (July 19th) just as the Nasdaq was hitting highs for the year. The math of the market (as discerned by our proprietary “Core Four” daily market internals formula) warned us things were deteriorating and caused a downgrade to yellow (caution) in our “Current Market Outlook.” We additionally wrote, “With stealth selling starting to take place under the stock market’s surface (especially in Tech-land)…” Since that time, the Nasdaq has fallen in 10 of the 15 trading days for a net loss of -4.60% (close to close). The footprints of money are discernable.

The Nasdaq has now completed the predictable trip back to its 50-day mav in a “Down/Up/Down” controlled, 3-wave counter-move which included a “sub-peak” lower-high on July 31st that confirmed our original July 19th cautionary signal. This sets up an important test of the Nasdaq’s 50-day mav NOW.

Our Current Market Outlook remains “Uptrend Under Pressure” with a yellow light (SPX at 4,485.97 at 12pm). Risks are rising at this juncture in the stock market. Our “Core Four” (see top of page) has 2 yellow and 2 red lights now with a resurrecting VIX (which is presently over its own 50-day mav – warning!). Distribution Days are increasing and interest rates are rising. A 4%+ yield on the 10-year US Treasury note is an important market tell.

In the aforementioned post we also shared, “It is interesting to note that MSFT made a big splash yesterday with a new service offering and Wall Street ran the whole list up. Yet, today the semi’s and certain other tech sectors on the Nasdaq are experiencing selling pressures. If the market’s rally is to expand broadly in the weeks ahead, the tech’s will have to participate. Otherwise, if the selling in Tech-land continues (rotation), investors might expect a sideways-choppy trend for a while at best.” 

The internals have deteriorated rather quickly in the past 2 weeks as indicated by the “Core Four” readings above. Our research has revealed that there are several examples of this throughout the stock market’s history. In many of those cases the market bounces for a short bit only to head lower, sometimes sharply, in the weeks ahead. Other times the market catches itself – usually with the help of a good news development – and then resumes its upward trek to new highs. If that proves to be our present situation, the current test of the 50-day mav’s on the major indexes has to hold… NOW!

You may be wondering what has caused the so-called “Magnificent 7” to be “not so magnificent” at the moment. Is their recent underperformance what makes most of them suddenly the “not so magnificent 7″ in our eyes? In a word, no.

The business practices of the majority of them are what is responsible for the new moniker. But this is actually nothing new. What follows is an excerpt of a bit of research we have done and why we actually refer to them as the “not so magnificent 7.”

First, giving credit where credit is due, we utilize a tremendous service from a remarkable group called the Biblically Responsible Investing Institute (or BRII) based in Matthews, NC. They make this statement… “BRII serves Christian investors by maintaining a database of biblically objectionable corporate behavior. We have included the screening report below as an example of the comprehensive research we provide our clients….”

They provide research reports on major corporations in the US, including the mag 7, and we take their work seriously for our clients protection and benefit.

Here’s an excerpt on Apple and some of their VIOLATIONs for example:

Abortion – Employee Sponsor (5/1/2023 – 5/31/2024)
A spokesperson was emailed in order to confirm that the company still covers travel expenses for its employees who travel outside their home states to obtain abortions.

Pornography – Internet (5/2/2023 – 5/2/2024)
Apple’s App Store made the National Center on Sexual Exploitation’s (NCOSE) 2023 Dirty Dozen List, which was released on May 2, 2023. According to NCOSE’s website, “The Dirty Dozen List is an annual campaign calling out twelve mainstream entities for facilitating, enabling, and even profiting from sexual abuse and exploitation. Since its inception in 2013, the Dirty Dozen List has galvanized thousands of individuals like YOU to call on corporations, government agencies, and organizations to change problematic policies and practices. This campaign has yielded major victories at Google, Netflix, TikTok, Hilton Worldwide, Verizon, Walmart, US Department of Defense, and many more.” NCOSE’s information on Apple App Store reads,” Deceptive to the core: Apple App Store age ratings and descriptions mislead parents about the content, risks, and dangers to children on available apps. When caregivers aren’t informed, kids pay the price. Appeal to Apple to #fixappratings.”

Pornography – Internet (10/12/2022 – 4/18/2024)
Apple’s iTunes software is linked to Apple’s online iTunes music store. One can purchase music and download podcasts, applications, etc. Many apps, books, audiobooks and podcasts with sexually explicit content are offered and many times for free. And one doesn’t have to download anything to be confronted with sexually explicit images on iTunes. A lot of the cover art/icons for these apps, books, audiobooks and podcasts are graphic. The company’s own 17+ rating states that “sexual content and nudity” can be found in certain apps, etc. BRI Institute was easily able to find photography and graphic illustrations of nudity and sexual content on itunes.com.

Unfortunately, this is only the tip of the iceberg. Worse still, Apple is hardly alone. 

Amazon is next and even worse.

Abortion – Emergency Contraceptive Distributor (7/27/2022 – 8/31/2023)
Amazon sells Plan B One-Step, My Way, Option 2, Take Action and My Choice, all emergency contraceptives, on its website.

Pornography – Internet (10/5/2022 – 4/18/2024)
Amazon sells Playboy magazines, books and DVDs online. The company also has an “Erotica” category for Kindle and hard-copy books.

Pornography – Producer (10/5/2022 – 4/18/2024)
Of Amazon, the National Center on Sexual Exploitation noted, “As a media creator, Amazon Prime Video inserts unnecessary, gratuitous nudity and simulated sex scenes into many of its original programming, while providing faulty parental controls.”

An example of really pathetic moral leadership. Contrary to the 80’s movie Wall Street– Greed is NOT good.

Then there is the great social reformer (more like censorship abuser!) of our day: Facebook, aka Meta Platforms. Whether it is known by any other name, it is still NOT a rose. But its culturally polluting actions are very recognizable.

Pornography – Internet (3/9/2022 – 5/31/2023)
Meta Platforms made the National Center on Sexual Exploitation’s (NCOSE) 2022 Dirty Dozen List, which was released on March 8, 2022. According to NCOSE’s website, “The Dirty Dozen List is an annual campaign calling out twelve mainstream entities for facilitating, enabling, and even profiting from sexual abuse and exploitation.” NCOSE’s information on Meta reads, “Meta may be an updated name and vision for Facebook, but the corporation’s extensive harms to children and adults alike remain the same. Meta owns Facebook, Instagram, and WhatsApp: all of which are consistently under fire as primary places for grooming, sextortion, child sexual abuse materials [child pornography], sex trafficking, and a host of other crimes and ills. Given its prominence and resources, Meta has the potential to lead the tech industry in creating and implementing online safety standards. Instead, Meta is prioritizing new projects and products, all while pursuing increased, sweeping encryption without sufficient provisions for child online safety which will aid predators in escaping detection and accountability. And without a commitment to put safety before profit across all its platforms, the so-called “metaverse”-where social media and virtual reality meet-will likely unleash new manifestations of sexual abuse and exploitation.”

Pornography – Internet (11/15/2022 – 4/18/2024)
Nudity is easily accessible on Meta Platform’s Instagram.

Abortion – Employee Sponsor (7/7/2022 – 6/29/2023)
According to the June 29, 2022 Reuters article, company will cover or reimburse U.S. employees who need to travel to receive medical care, including abortion, if access where workers live is restricted.

Another name changer, Alphabet (formerly Google) is also morally filthy. Do you suppose they “changed their name to protect the innocent?” NOT HARDLY. But themselves for sure.

Abortion – Employee Sponsor (6/30/2022 – 6/29/2023)
According to a June 29, 2022 Reuters article, the company will cover or reimburse U.S. employees who need to travel to receive medical care, including abortion, if access where workers live is restricted.

Pornography – Internet (3/1/2022 – 4/18/2023)
A search of sex-related words (sex, porn) on Alphabet’s Google search engine resulted in pornographic websites.

Pornography – Internet (3/10/2022 – 3/8/2023)
The company’s Google made the National Center on Sexual Exploitation’s (NCOSE) 2022 Dirty Dozen List, which was released on March 8, 2022. According to NCOSE’s website, “The Dirty Dozen List is an annual campaign calling out twelve mainstream entities for facilitating, enabling, and even profiting from sexual abuse and exploitation.” NCOSE’s information on Google reads, “Google Search drives people to pornography sites when they search for themes of rape, racism, incest, sexual abuse of minors, and other illegally-themed or socially damaging-themed pornography. When users search for illegal-, violent-, incest-, and racist-themed pornography like “forced sex porn,” “drugged porn,” “white supremacist porn,” “hidden camera porn,” “Asian slave porn,” “leaked”/ “hidden camera porn,” “teen porn,” etc. Google Search yields pornography sites.”

We believe that running a business or making money in this manner is downright deplorable. An abomination.

What’s next? Ask yourself this question: How long until they begin to promote and monetize prostitution and pedophilia? Answer: Signs indicate they already are.

To that point, have you seen the movie Sound of Freedom? We have. It’s heartbreaking and sickening, but ultimately encouraging and empowering. We highly recommend it. Thank God people are starting to push back on this evil!

We are all accountable to each other. More so to God. Whether you believe in Him or not doesn’t make Him not exist. It is required for mankind to intervene for good and to strive against evil. We will have to give an account for our apathy one day.

“Open your mouth for the mute,
   for the rights of all the unfortunate.
Open your mouth, judge righteously,
   and defend the rights of the afflicted and needy.”

Proverbs 31:8-9 NASB 1995

It’s a sin problem. We all have it. And that is why we need a Savior. <><

Game plan: Distribution Days are increasing – don’t be complacent. Prepare your exit strategy in case the key 50-day mav’s fail to provide institutional buying support. A sustained big price move in the major indexes on massive volume would be a bullish long-term sign. The 10-year US Treasury note’s yield is a big tell. “Higher rates? Head for the gates!”

Note: You can learn more about The Triumphant Core Four risk management system by clicking here.

Have a Triumphant day! ®