Special Bulletin: October 15, 2021

Subpeak coming?

Based on yesterday’s action, Oct. 14, our Current Market Outlook was upgraded to “Uptrend Under Pressure” with a yellow light. The character of the stock market changed over the past few weeks. The current environment for investing in growth stocks and the general stock market indexes reflects higher than normal risk. (Please note I am traveling this week and will have limited time/access for updates.)

The S&P500 & Nasdaq are attempting to move back over their 50-day moving averages this week, which has caused our signal to change back to yellow. The stock market is at a major technical moment as it will either play out to be a “Subpeak/Nathan Short” failure (see our previous post here) or power ahead to new highs in the very near future.

Our “Core Four” now stands with 2 green, 1 red, and 1 yellow light (see top of page) causing our light to be yellow.

We remain defensively positioned in our strategies. 

What to do now? You can begin to carefully build a few new, small positions in your strongest watch list ideas. But be prepared to cut them quickly if the key indexes break back down below their 50-day mav’s on heavy volume. Continue monitoring the US 10-year note rate as a “taper tantrum” tell.

Have a Triumphant day! ®