In the face of great uncertainty, big investment institutions are selectively putting massive amounts of capital back to work… and as such, our mathematical signal has improved and we must follow the markets lead.
As of this morning, our Current Market Outlook has been upgraded to “Market in an Uptrend” with a green light (as of 10am today with the SPX at 4,175.16). Our “Core Four” (see top of page) now shows no red, 2 yellow and 2 green lights with a VIX under its 50-day mav.
Just 3 days ago we wrote, “This new signal, the downgrade to yellow, may be very short lived. That means it may just be a temporary pause preceding a sharp move back to green… or on to red. I don’t know and you don’t either. But we will both know soon.
Expect volatility (price violence) to increase leading up to June 1st. By the way, be careful to understand that price “volatility, or violence” can also mean moves to the upside. Trillions of dollars with opposing bullish and bearish viewpoints are colliding daily. One or the other will eventually prevail; rendering the “sideways chop” trading range obsolete.”
And so it is. The market appears to be seeing something on the 6-9 month forward horizon that it likes. Investors are certainly not out of the woods, but conditions are improving. Think longer-term as you begin to deploy capital. If the bear market is dead and interest rates are at or near their rate cycle peaks, a great deal of opportunity to prudently make money will present itself in the next 2-4 years.
At Team Triumphant, we will take time this weekend to pause and reflect on the lives of those who sacrificed it all so that we may enjoy our freedoms. God, please bless their families.
“Greater love has no one than this, that one lay down his life for his friends.” John 15:13 NASB 1995
Game plan: Enjoy your long weekend and salute (and thank) a Vet. The major stock indexes continue to hold above their respective 50-day mav’s. Continue watching longer-term interest rates (see TBT) for a market tell.
Ps. We are sorry for the delay in today’s post, and we thank you again for your patience and prayers.
Note: You can learn more about The Triumphant Core Four risk management system by clicking here.
Have a Triumphant day! ®
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice. ©2023 Triumphant Portfolio Management, LLC.
Where Are Woodward and Bernstein When We Need Them? This article was written by Newt