- Moving the markets
Wall Street was worried on Thursday as the Fed might raise interest rates again this year. Apple and other tech stocks suffered as China banned iPhones in state firms.
Jobless claims were lower than expected, and labor costs were higher, signaling a strong labor market. This, along with rising energy prices, could pressure the Fed to tighten its policy, which the market doves don’t like.
The “Magnificent 7” and the “most shorted stocks” both had a bad day, forming a possible bearish pattern. Bond yields fell, the dollar rose, and gold dipped. Oil prices dropped despite low supply and high demand.
What’s going on?
2. “Buy” Cycle Suggestions
The current Buy cycle began on 12/1/2022, and I gave you some ETF tips based on my StatSheet back then. But if you joined me later, you might want to check out the latest StatSheet, which I update and post every Thursday at 6:30 pm PST.
You should also think about how much risk you can handle when picking your ETFs. If you are more cautious, you might want to go for the ones in the middle of the M-Index rankings. And if you don’t want to go all in, you can start with a 33% exposure and see how it goes.
We are in a crazy time, with the economy going downhill and some earnings taking a hit. That will eventually drag down stock prices too. So, in my advisor’s practice, we are looking for some value, growth and dividend ETFs that can weather the storm. And of course, gold is always a good friend.
Whatever you invest in, don’t forget to use a trailing sell stop of 8-12% to protect yourself from big losses.
3. Trend Tracking Indexes (TTIs)
The markets remained weak for the second day in a row, with the S&P 500 and Nasdaq falling further.
Our TTIs also declined, but they are still above their long-term moving averages, indicating that the bull market is not over yet.
This is how we closed 09/07/2023:
Domestic TTI: +1.35% above its M/A (prior close +1.75%)—Buy signal effective 12/1/2022.
International TTI: +2.97% above its M/A (prior close +3.39%)—Buy signal effective 12/1/2022.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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