Seasonal Weakness Continues. But...

JC Parets
September 25, 2023

On the eve of Chart Summit 2023, let's take a look at how some of the most important areas of the market are holding up during what is seasonally the most bearish time of the year.

Technology represents close to 30% of the S&P500 and almost half the entire Nasdaq100. And here it is going out at its lowest weekly close since May:

That overhead supply continues to be a problem for the 'buy and hope' investors.

That strategy historically doesn't work, and this is a good example as to why we stay away from that hope and pray stuff.

With Tech stuck below overhead supply, we turn our attention to the entire Nasdaq100, as it breaks a key uptrend line from last year's lows:

And while it might seem like this is just a problem for Tech and Growth stocks, when you look at Industrials you'll notice the exact same predicament.

Industrials are also stuck below overhead supply:

Meanwhile, take a look at what the Median stock is doing in this environment. The Value Line Geometric Index does a great job of displaying that for us.

I think a breakdown here probably says a lot about further weakness in stocks.

The bulls really need a breakout above 600 in this index to justify any kind of positive outlook:

During all this, we've seen money rotate into the US Dollar as it flows away from risk assets like stocks.

But one thing that really stands out to me is how well precious metals have held up despite the strength in the US Dollar and Real Interest Rates.

If you would have told me what the Dollar was about to do in the face of those rising real rates, I would have told you it's probably a bloodbath in precious metals.

However, it's been anything but...

I must say that I am very impressed with the strength in precious metals.

We discussed this all last week on our LIVE Conference Call.

On Tuesday & Wednesday of this week we will surely be asking some of the smartest traders and analysts in the business how they feel about metals, stocks, rates, energy and so much more.

If you've never attended Chart Summit before, now is your chance.

Register Here to attend the #1 Virtual Financial Conference in the world absolutely FREE.

We'll get going Tuesday at 4:30 pm ET for the opening ceremony, a fun panel discussion about market breadth and a few more treats we have for everyone in attendance.

Wednesday we'll get going bright and early 8:30 am ET and go straight through until 5:30 at night.

This is looking like the best Chart Summit yet.

Click Here for Speaker List and FREE Registration.

See you there!

JC

 

 

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