Every year in the Spring we hear about "Sell in May and Go Away".
And this year that would have worked out well for you. That's when the NYSE Advance-Decline line peaked. That's when the NYSE stocks really began their drawdowns. That's when the new 52-week high list peaked on the NYSE.
In 2021, every month except April has seen the S&P 500 testing its 50-day average. Only after the initial test in February did the index fall further below that average than it is doing in September. The pattern so far this year has been tests of the 50-day that ultimately resolve higher. Whether that happens this time remains to be seen. With investors re-evaluating their bullish views on stocks, bond yields starting to rise and the action beneath the surface showing increasing vulnerability, we want to see evidence of upside resolution rather than just assuming it is on its way.
Another 20 year base breakout? This is the second one we're putting a trade on in this week! Maybe the market is trying to tell us something?
I have to be honest, when I first pulled this ticker up, I thought it was a Men's suits maker. But when I learned it's involved in the intersection of Artificial Intelligence and Semiconductors, the sex-factor went up for me.
These are the registration details for our live conference call for Premium Members of All Star Charts.
This month’s Conference Call will be held on Monday September 20th at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.
From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
In today's post, we’re going to do an update on some of our favorite and most essential intermarket indicators. We’ve also updated our risk checklist so we can discuss the changes that have occurred over the past week or so.
Are market participants embracing more or less risk these days?
We’ll get there.
We've been obnoxious about our theme that this remains a messy environment for stocks, which is nothing but classic "year two" bull market behavior.
But guess what: That’s just what it is right now. You have to play the cards you’re dealt, and right now they’re not the best. This is particularly true for trend-followers like ourselves.
Let’s talk about why.
Our custom “Risk-On” and “Risk-Off” indexes have been a perfect illustration of the 2021 market environment.
This is what a hot mess looks like… and it’s true for both custom indexes as well as the ratio of the two!
Crypto as an asset class can be very intimidating.
There's so much jargon and nomenclature thrown around, and the drivers of these tokens are very different from traditional markets.
And it's certainly not getting any simpler. There's a flourishing list of smart contract platforms, defi protocols, and other projects, all with their own objectives, purpose, and communities.
Whether you're a developer or a humble trader looking to lend and borrow in the world of defi, the market is becoming so oversaturated with all these protocols that it becomes downright daunting to even touch it.
But I think we can all take solace in the fact that no one is a complete expert in this stuff.
This isn't commodities or stocks where a group of oldtimers have decades of experience dealing with these markets. Crypto has been around for less than a decade, and in the case of the biggest names in the asset class today, less than a few years.