Thursday, September 4, 2025

Jobless Claims ... ISM Services ... ADP Employment ... Momentum Trading DOW Stocks & ETFs … Stock Market Analysis ...

 
“What the welfare system and other kinds of governmental programs are doing is paying people to fail. Insofar as they fail, they receive the money; insofar as they succeed, even to a moderate extent, the money is taken away.” ― Thomas Sowell, senior fellow at the Hoover Institution.
 
“Trade what you see; not what you think.” – The Old Fool, Richard McCranie, trader extraordinaire.
 
“Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.” - Peter Lynch, former manager of Fidelity’s Magellan® fund.
 
"This is maybe the most dangerous market of my career, and that includes 1987's crash, that includes the savings and loan debacle market of the early '90s, that includes the 1999 to 2009 lost decade in the S&P 500 in the dot-com bubble. This is the most difficult market of my 45 years." -  Bill Smead, Smead Value Fund (SMVLX), May 2025.
 
"Without debate, without criticism, no Administration and no country can succeed—and no republic can survive". - JFK
 
TRUMP STILL CLAIMS MAIL-IN VOTING COST HIM THE 2020 ELECTION
“President Donald Trump announced Tuesday that U.S. Space Command's headquarters will move to Alabama from Colorado, reversing a Biden administration decision. In remarks at the White House, Trump said he was making the shift in part because of Colorado's use of mail-in voting. "The problem I have with Colorado, one of the big problems, they do mail-in voting, they went to all mail-in voting, so they have automatically crooked elections," Trump said in the Oval Office.
https://www.nbcnews.com/politics/white-house/trump-moving-space-command-hq-alabama-colorado-mail-voting-system-rcna228647
 
Let’s check “voter fraud” in the 2020 election.
2020 VOTER FRAUD (Heritage Foundation Database)
Heritage Foundation reports that there have been 17 convictions for voter fraud in 2020.  [Could be higher now; I haven’t checked this in a while.] Convictions included the following offenses: False Registrations; Buying Votes; Ballot Petition Fraud; Illegal "Assistance" At The Polls; Fraudulent Use Of Absentee Ballots; and Ineligible Voting. A few examples follow:
-“Randy Allen Jumper voted twice in the 2016 general election. He voted by absentee ballot in Arizona and again by absentee ballot in Nevada. He pleaded guilty to attempted illegal voting, a class 6 felony. He was sentenced to two years probation, fined $5,000, and is barred from voting in Arizona.”
- “April Atilano, of Monterey County, pleaded guilty to 6 counts of felony voter fraud for falsifying voter registration forms. Atilano falsified a number of voter registration cards by changing party affiliation and forging signatures. The forms were submitted to the Madera County Registrar of Voters in July 2019. Atilano was sentenced to one year in prison and three years probation.”
-“Delores "Dee" Handy, of Crowley was found guilty of failing to mark a ballot as instructed when assisting an elderly voter, a misdemeanor. She was sentenced to 11 months in jail which was suspended, two years of probation, and fined $800.”
 
According to Trump. he was robbed in Georgia due to absentee voting, so let’s look at the numbers.
Donald trump won Georgia by 211,000 votes in 2016; Trump lost Georgia by 12,000 in 2020.  So, by Trump’s claims, the Democrats would have needed to falsify at least 233,000 votes to flip the election. Since paper ballots matched the voting machines, the machines weren’t to blame. [Fox paid $750-million for lying about voter-machine fraud.] Absentee ballots? Absentee ballots were matched to voter registrations and signatures were checked. The Dems would have needed to forge close to a quarter-million signatures of existing voters and get them past the verifiers certifying the election - Absurd. Oh, by the way, if any of the 233,000 real people whose identities were stolen voted, they would be identified for duplicate voting. Could the Dems register a quarter million fake names and use them to vote? Not likely. As noted above, Ms. Alitano got caught submitting 6 false registrations.
 
It is simply impossible to steal an election on the scale that Trump continues to claim. 
For more, see the Heritage Foundation website and search the database at...
https://www.heritage.org/voterfraud
 
On the most commonsense level, Trump was behind in the polls before the 2020 election.  Why would anyone be surprised he lost? Further, it the Dems were so good at faking votes, why didn’t they give themselves a clear majority in the Senate so they could do whatever they wanted? (They didn’t get a majority in the Senate until runoff elections in Georgia were held after the Presidential election. Democrats won both Senate seats in the Georgia runoff after the November election thanks to Trump’s lying about the stolen election.)
 
RAY DALIO WORRIED ABOUT THE US ECONOMY AND SUPRESSION OF CRITICISM (Fortune)
“Billionaire investor Ray Dalio has delivered a stark warning about the state of American discourse around the nation’s economic challenges, saying fear of retaliation, particularly from the Trump administration, is keeping investors and business leaders from voicing critical concerns about the country’s fiscal trajectory... “Most people are silent because they are afraid of retaliation if they criticize,” Dalio said, highlighting what he sees as a dangerous suppression of economic debate at a critical juncture for the United States...Dalio’s alarm centers on what he describes as an impending ‘debt-induced heart attack in the relatively near future,’ which he said could strike the U.S. economy within the next three years. The numbers support his concern: America’s national debt has reached a staggering $37 trillion as of August, representing approximately 124% of the nation’s gross domestic product—levels not seen since World War II. More troubling, the Congressional Budget Office projects the debt-to-GDP ratio will climb from 100% in 2025 to 156% by 2055 if current policies remain unchanged.” Story at...
https://www.msn.com/en-us/money/markets/ray-dalio-says-most-people-are-silent-because-they-re-afraid-to-talk-about-what-s-really-happenin
My cmt: Ray Dalio is a founder of Bridgewater Associates, the world’s largest hedge fund with approximately $130 billion under management. These are not anti-Trump comments; rather, they are economic realities. Is he right about a crisis starting within three years? I don’t know. I will rely on my stock-market indicators to warn me if there is a major crisis coming. My indicators have been very reliable warning of major tops. They even called the top in the Covid pandemic - the Fosback High/Low Index called the top of the pandemic to the day.
 
JOBLESS CLAIMS (Yahoo Finance)
“Applications for US unemployment benefits rose to the highest since June, with initial claims increasing by 8,000 to 237,000 in the week ended Aug. 30.” Story at... 
https://finance.yahoo.com/video/us-economy-jobless-claims-rise-124620779.html
 
ISM SERVICES / PRODUCTIVITY (ISM)
“Economic activity in the services sector grew in August for the third consecutive month, say the nation's purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® indicated expansion at 52 percent, above the 50-percent breakeven point for the 13th time in the last 14 months... “The Prices Index registered 69.2 percent in August, a 0.7-percentage point decrease from July’s reading of 69.9 percent.” Report at...
https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/services/august/
 
ADP EMPLOYMENT (CNBC)
“Private payrolls increased by just 54,000 in August, according to data from processing firm ADP published Thursday morning. That’s below the consensus forecast of 75,000 from economists polled by Dow Jones, and marks a significant slowdown from the revised gain of 106,000 seen in the prior month... Thursday’s ADP report adds to an already concerning picture of the labor market.” Story at...
https://www.cnbc.com/2025/09/04/adp-jpb-data-august-2025.html
 
MARKET REPORT / ANALYSIS
-Thursday the S&P 500 rose about 0.8% to 6502.
-VIX declined about 6% to 15.29.
-The yield on the 10-year Treasury declined to 4.161% (compared to about this time prior market day).
 
MY TRADING POSITIONS:
SPY – Added 8/26/2025
XLK – Added 8/26/2025
 
CURRENT SUMMARY OF APPROXIMATELY 50 INDICATORS:
Today, of the 50-Indicators I track, 4 gave Bear-signs and 17 were Bullish. The rest are neutral. (It is normal to have a lot of neutral indicators since many of the indicators are top or bottom indicators that will signal only at extremes.)

TODAY’S COMMENT
The daily, bull-bear spread of 50-indicators improved from +6 to +13 (13 more Bull
indicators than Bear indicators) and is now giving a Bullish indication. I consider +5 to -5 the neutral zone. The 10-dMA curve of the spread reversed upward – another Bullish sign.
 
On Thursday there was a new all-time high for the S&P 500. At all-time highs, I always check breadth on the NYSE. When we look at New, 52-week highs, we see that around 4% of issues on the NYSE made new 52-week highs today.  That number is disappointing and well below the 5-year average of about 7%. 54% of issues on the NYSE have been up over the last 2-weeks. The take-away here is that breadth is not sending a warning signal, but we’d like to see better numbers. 
 
One signal that we rarely see is the Fosback, 10-dMA Hi/Lo Logic Index.  It is still close to issuing a buy-signal, although it is not there yet. The 5-day version of this indicator remains bullish, although the 5-day version is not in my 50-indicator ensemble.
 
The Bolinger Band Squeeze remains in place. As noted yesterday:
Today, there was a Bollinger Squeeze signal that occurs when Bollinger Bands are close together. “A Bollinger Band... is defined by a series of lines that are plotted two standard deviations—both positively and negatively—away from the simple moving average (SMA) of the price of an asset... A Squeeze is triggered when volatility reaches a six-month low and is identified when Bollinger Bands reach a six-month minimum distance apart...” The Bollinger Squeeze predicts a big move (breakout) in the S&P 500, but it doesn’t tell us the direction of such a move. To determine breakout direction, Bollinger suggests looking at other indicators. He suggests using the relative strength index (RSI). Bollinger bands are discussed at Investopedia...
https://www.investopedia.com/terms/a/accumulationdistribution.asp
RSI is near the middle of its range so it will not tell us what direction a breakout may be. In addition, Bollinger mentions a few other indicators I don’t use.  From my indicators we see that the daily, bull-bear spread of 50-indicators improved to a Bullish +13 (13 more Bull indicators than Bear indicators) and the 10-dMA of the spread is now rising – a bullish sign. This suggests the breakout should be upward.
 
The biggest concern remains: all of the ETFs that I track for momentum purposes are above their respective 120-dMAs.  That signals a top, but declines following the signal are often small, and the signal can be early.
 
BOTTOM LINE
I am cautiously bullish.
 
ETF - MOMENTUM ANALYSIS:
TODAY’S RANKING OF 15 ETFs (Ranked Daily) ETF ranking follows:
 

The top ranked ETF receives 100%. The rest are then ranked based on their momentum relative to the leading ETF.
*For additional background on the ETF ranking system see NTSM Page at…
http://navigatethestockmarket.blogspot.com/p/exchange-traded-funds-etf-ranking.html
 
DOW STOCKS - TODAY’S MOMENTUM RANKING OF THE DOW 30 STOCKS (Ranked Daily)
 

The top ranked Stock receives 100%. The rest are then ranked based on their momentum relative to the leading Stock.
For more details, see NTSM Page at…
https://navigatethestockmarket.blogspot.com/p/a-system-for-trading-dow-30-stocks-my_8.html
 
THURSDAY MARKET INTERNALS (NYSE DATA)
My basket of Market Internals improved to BUY. (My basket of Market Internals is a decent trend-following analysis that is most useful when it diverges from the Index.) 
 
 
 
 
My current invested position is about 50% stocks, including stock mutual funds and ETFs.
50% invested in stocks is a normal, conservative position for a retiree. (75% is my max stock allocation when I am confident that markets will continue higher; 30% in stocks is my Bear market position.)
                                             
I trade about 15-20% of the total portfolio using the momentum-based analysis I provide here. When I see bullish signs, I add a lot more stocks to the portfolio, usually by using an S&P 500 ETF as I did back in October 2022 and 2023.