Market Thoughts
Some weekends - analyzing the 2,750+ stocks and ETFs in the Hedgefolios universe is rather easy. Not this week. To put it mildly, I got bleary-eyed studying and restudying charts and that was before I looked over the fundamentals and other market data I review before updating the signals. I am not complaining - just contemplating - because I find a message in the difficulties and how irritated I get. Since the end of October, the market has been in a happy trend higher with not much other than normal turnover. That has clearly changed and if you look at the MANAGE section, you’ll see quite a few (217) new Down signals this week and the ratio of new Down signals to new Up signals was abnormally bad - 14:1. Furthermore, the Hedgefolios Timing Indicator shown in the ANALYZE - Market Statistics section is suggesting that the market is getting tired. I am seeing strong stocks that are weakening and weak stocks that are weakening. Translation - selling pressure is increasing and buying power is tepid at best. Hedgefolios still has a positive bias on the market, but it’s starting to head in the other direction.

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