Michele Schneider | Aug 14, 2024 02:14AM ET
We are exercising caution as the growth stocks and S&P 500 (NYSE:SPY) are in warning phases, well below their July calendar ranges, and with momentum showing some mean reversion but not enough momentum to get me to put clients in new positions
Could that change?
Yes, but I’d rather wait for that to change and meanwhile consider the relative strength in the metal miners and oil right now.
Also, long bonds TLT are signaling trouble ahead with risk off.
As the market finds some footing we see rotation back into growth stocks.
While the market sorts out the true value of equities going forward considering these variables
We are focused on commodities for investors looking to enter low-risk, high-return potential right now.
Right now, the NASDAQ chart shows a lack of clarity.
While the move off the lows is impressive, QQQ needs to clear the 50-DMA and the July 6-month calendar range low.
The performance versus the SPY has improved, while the Momentum at this point, also needs to prove more.
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