Unpopular Opinion: The Recession Already Happened
The recent stock market rally seems to contradict predictions of an imminent economic slowdown. This illustrates the principle that sentiment follows price, not vice versa. Just a couple of weeks ago, many were anticipating an economic downturn by year-end. Even my A.I. Timing Webs model had me at over 40% cash at the beginning of…
TheoTrade’s Tale of the Tape: Did Bulls Buck the Bears?
Bears felt the heat and were squeezed the entirety of last week, as bulls forced a close near the highs of the week on Friday. Markets also digested soft labor data, as well as retail spending numbers that came in above estimates. So, just like that - is the recession canceled? Not so fast -…
We Finally Parked the Truck on this Gold Stock
If you’ve been following any of my trades in the past few months, I’ve been very loud about the bull trend in gold, and by extension, precious metal stocks. One of my favorite names in the space that I continue to own is AngloGold Ashanti (Ticker: AU). I started buying this stock in late-February, and…
TheoTrade’s Tale of the Tape: Taking Stock of Stocks Since Last Week
Well, that sure was a dramatic week! But now that we have the final score from last week’s rollercoaster of trading, a proper assessment can be made. One thing’s for sure - there’s been a total shift in sentiment over the past few weeks. We’re no longer in the feel-good, euphoric environment of mid-July. Now,…
The Japanese Yen Was the Canary in the Coal Mine - As I Warned
Hello and Happy Friday TheoTrader! Back in April, I sent you a letter talking about a potential currency crisis, specifically on the Japanese Yen. As it turns out, we were months ahead of the curve, as the Bank of Japan finally lifted off the zero bound recently, which led to a massive rebound in the…
TheoTrade’s Tale of the Tape: Now the Smart Move Is to Wait
Well, by now everyone has pretty much accepted that we’re in a risk-off market environment. The public is starting to panic, as the unwind of the carry trade in the Japanese yen triggers margin calls across the world. I raised a substantial amount of cash over the past couple of weeks, and even had members…
I Wasn’t Joking About “Risk-Off” - This Is What to Do
Over the past couple of weeks here in Sector Leader Bullseye, I’ve been ringing the alarm surrounding the flow of capital into defensive segments of the market. In fact, I felt so strongly about it that I was compelled to do a special session on Wednesday on the cautionary rotations taking place underneath the surface…
TheoTrade’s Tale of the Tape: The Flight to Safety Accelerates
Between election season, economic data, and September rate cuts all but confirmed, markets are fresh off a volatile week of trading. In fact, Friday’s rally staved off what could have been a cataclysmic close to the week. In recent weeks, I’ve made a point of updating you on some of the cautionary capital flows taking…
A.I. Timing Webs Has Launched
Markets have been all over the place this week, but there’s been a true diamond in the rough amidst the turmoil - biotech. As a reader of Sector Leader Bullseye, you’ve been in the loop as to what’s transpiring in this sector, and the good news is that it’s still early. Yesterday, I unveiled…
Why We’re Following Relative Strength Closely
I hope you paid attention to my warnings in the past week about the market's abrupt shift to “risk-off” status. This was plainly evident by the flight-to-safety trades in the stock market, and capital seeking refuge in defensive sectors. With that being said, our strict adherence to relative strength principles has allowed us to weather…