How much longer is this market going to be a mess?
Probably longer than you want it to be.
Why do you think defensive assets stopped going down 5-6 months ago?
It’s been a chopfest in most areas of the world.
Here in the U.S. it can be seen clearly as you go down the cap scale:
Look at that mess.
You can also see it in the intermarket relationships.
Here are two: Aussie / Yen and High Beta / Low Volatility
We talked about Cash and Champagne back in May when the Dow Jones Industrial Avg and Dow Jones Transportation Avg both hit our upside objectives.
As you can see, the Industrials are still at the same levels they were 4 months ago.
But Transports have not fared as well. They just went out at their lowest levels since March.
I look at this chart of the S&P500 and wonder if the market will care about these potential levels of interest.
These levels mattered in 2015. They mattered again in 2018. Will they in 2021?
What about Tech?
Will these levels matter like they did last September?
What about Financials?
Will these levels matter?
I still think the resolution here in Industrials is going to give us the answer. This is possibly the most important chart in the world right now:
How do you feel about aggressively buying stocks in front of this?
Does it make you want to have a lot of cash?
Does it make you want to buy stocks?
Do you get anxiety thinking you might be too big right now?
Do you feel like you don’t have enough exposure?
Stocks about to rip higher?
Or is this correction about to take a dive lower?
How are you feeling?
Let us know. We love to hear from you!