I
wrote a while back that the Morgan Stanley Cyclical Index was underperforming
the S&P 500 and that was predictive of recession. Here’s a chart of today’s (Tuesday's) Cyclical stocks vs.
the S&P 500.
The
pattern shows the cyclical stocks (in Blue) outperforming the S&P (in
Green). That was true for today and also
for the last 5-days. This development is
clearly bullish.
Most
of the talk (not all; and that’s good) is bullish. Liz Ann Sonders (Senior Vice President,
Chief Investment Strategist, Charles Schwab & Co., Inc.) said today that there could
be an explosive upturn if we get good news, because there’s a lot of money on
the sidelines.
VIX
is coming down, but not as fast as I’d like so the VIX indicator is “hold” and
that’s why the Navigate the Stock Market analysis slipped back to HOLD today.
I bought back into stocks at S&P 500 1155 on 7 Oct after the 6 Oct
NTSM buy signal.
I am 100% long in the long term portfolio (100% stocks in the
401k.) and 100% long in the trading portfolio. (See the page “How to Use the NTSM System” –
the link is on the right side of this page).
