2023 turned out to be a great year for investors.
It was really hard not to make a lot of money last year.
And while the trends for stocks and many other risk assets are certainly up, we want to be identifying what the market will have to do for us to position ourselves much more defensively into the new year.
The first warning of a non-so-great market environment would be a breakdown in the Nasdaq100 and Small-cap Russell2000.
Look at those former highs in QQQ from late 2021. If the Nasdaq100 ETF is below 400, that would put it back below those former highs, increasing the vulnerability for further downside, or even a grind sideways. [Read more…]