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We regularly update our clients as to what we're seeing in the markets and overall economy, as well as provide some basic portfolio changes and updates we are making.  Stay tuned to learn more every two weeks!

Friday, November 10, 2023

There have been some very positive technical advances as of late; however, until there is a solid breakout of price above the downtrend line, the S&P 500 is still considered to be in a...

Friday, October 13, 2023

The S&P 500 had an apparent short term, fake breakdown, which has recovered back into our up-channel trend. Next week will tell if it can continue to hold the trend or not...

Thursday, September 28, 2023

The S&P 500 has recently pulled back from its highs but remains within an acceptable range of volatility, indicating a mid-range technical uptrend characterized by higher highs and higher lows.

Friday, September 15, 2023

Key Takeaway Today - Friday, September 15th falls on a day known as "triple witching". The term, admittedly a little scary in nature, is known for describing an event which happens four times per calendar year where huge amounts of...

Thursday, August 24, 2023

The S&P 500 has pulled back from it's overbought highs, and is trying to find a floor to its recent pullback. So far it may be close, but no cigar - quite yet...

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Friday, August 11, 2023

As we come to the tail end of earnings season and enter a historically difficult seasonality period (Aug/Sept - especially Sept), the market is following suit. Below are the areas we are watching with great interest...

Thursday, June 22, 2023

There is no doubt that buyers have come back into the market. Confidence levels have recovered for investors; however, has the market traveled too far, too fast? 

Friday, May 12, 2023

Technical Analysis if full of varying scenarios that can be viewed in very different ways.  Below are three separate ways to look at the same chart of the S&P 500 - each telling a slightly different story. 

Thursday, March 30, 2023

If you turn on the news or read the paper, there's no way this market could go higher, right?!....not so fast - let's take a peek under the hood... 

Thursday, March 16, 2023

Whether you're a Johnny Cash fan or not, the market has been Walking the Line for the first 3 months of this year....and it actually does feel a lot like Prison!  We've updated our chart to include some new and potential trend lines.

Thursday, March 2, 2023

We've been discussing for some time that you can't have such a long and strong downtrend line in the S&P 500 (which lasted the entire year of 2022), and not expect it to be tested as support after the eventual breakout.

Thursday, February 16, 2023

Key TakeawayThe market is wishing that inflation will subside and that the Fed will begin to lower rates later this year. However, as the old adage goes, be careful what you wish for! During the two major bear markets of recent...

Thursday, February 2, 2023

The fear on Wall Street has very quickly turned into FOMO (fear of missing out) this week. The market has finally broken its year-long down trend. There was a quick 1-day retest of support, and then shot to the moon. The...

Thursday, January 5, 2023

When borrowing costs are rising, investors are wary of buying risk assets. This leads to less borrowing by households and businesses which means less money being spent. In turn...

Friday, December 23, 2022

Key TakeawayThe famous Santa Claus rally officially begins today and runs through the first couple of trading days of the new year. Will Santa deliver a great gift or a lump of coal this year??  I guess we'll find out soon...

Friday, December 16, 2022

Following the announcement this week of increasing the Fed Funds rate by another 50 bps, there was a very hawk'ish tone set forth by Fed Chairman Powell of no end in sight, which the market did not digest very well. With this recent...

Wednesday, December 7, 2022

The S&P 500 has enjoyed a nice rally over the pays couple of months. Can it continue or has this wave crested? Check out this episode to understand the...

Friday, November 11, 2022

The market has responded well to a hint that rates may have peaked, or "possibly" will begin to slow their upward trajectory with the recent CPI (inflation) reading, which came in slightly below expectations.  This is creating the belief...

Friday, October 28, 2022

The recent breakup in the market, which we've played, is at a turning point. For the very near-term, the market will either turn up or down. As you will see, the S&P 500 is right in the middle of its down- trending channel. As a result...

Thursday, October 6, 2022

As you will see that the bulls are making a move off of the bottom as illustrated by the S&P 500, but it is still very dependent on the direction of the 10-Year Treasury Yield and the Dollar - both of which are relentlessly climbing...

Thursday, September 29, 2022

Let me be the first to point out that no two bear market corrections are the same, but sometimes they can behave in similar fashions at various stages of a correction. Only time will tell as to how close they ultimately...

Wednesday, September 14, 2022

As referenced in previous market updates, 2022 has been and will continue to be a very volatile year - so stay buckled!  We will get through this, and in years to come, I believe we are in a time that will be viewed as...

Wednesday, August 31, 2022

The S&P 500 took a punch to the gut after Fed Chair Powell promised to get inflation under control at all cost after last week's Fed meeting. Clearly the market did not take well to his tough stance. So where are we?

Friday, July 29, 2022

Okay - We're not tooting our own horn, rather pointing out how technical analysis can be predictive and productive. Looking at our prior Market Update post (2 weeks ago), you will see that we...

Friday, July 15, 2022

The S&P 500 continues its downward trend; however, is consolidating in a "wind up" pattern that will result in either...

Friday, July 1, 2022

The S&P 500 is still in a clear downtrend; however even "Bear Markets" have rebounds that can be significant.  For instance...

Friday, June 24, 2022

The S&P 500 is in a clear downtrend. There's no one denying that, and...

Friday, June 10, 2022

The May Consumer Price Index (CPI) report was released at 8:30am EST and it showed that inflation remains red hot and persistent. While expectations were for a rise of 0.7%, the number jumped up...

Friday, June 3, 2022

The S&P 500 has dropped below key support and is now retesting that level. So the million dollar question at this point is...

Wednesday, May 18, 2022

Wednesday, March 30, 2022

Thursday, March 17, 2022

Tuesday, March 1, 2022

Wednesday, February 16, 2022

The market went from trending up to now trending sideways. A consolidation of gains is not uncommon after a long up-trend. So now we're stuck in a sideways pattern that will eventually breakout to the upside or break down creating...

Monday, January 31, 2022

The S&P 500 is holding short-term support as indicators rise from extreme oversold levels. Our tactical portfolios, which follow short-term momentum signals, are starting to rotate back into growth stocks.

Monday, January 24, 2022

The sell-off in global equities has been persistent over the past week, which supports defensive positioning. We continue to raise cash and reallocate capital from growth stocks into value stocks.

Tuesday, January 18, 2022

Equities continue to slide as the 10-year Treasury yield broke above 1.75%. Therefore, we positioned portfolios toward value/defensive sectors, maintained some cash, and will monitor non-US stocks, commodities and currencies.

Monday, January 10, 2022

The pullback in equities occurred during a spike in Treasury yields last week, which is negative for growth stocks. Our indicators shifted to risk-off this week, and we positioned for upside in equal-weight SPY and value stocks.

Monday, January 3, 2022

Our indicators are in in moderate risk-on mode and we remain overweight healthcare. The S&P 500 faces initial resistance around $4,800, which means short-term upside could be limited. Equity returns tend typically narrow in January.

Monday, December 27, 2021

The S&P 500 reached an all-time high as year-end buying accelerated. Historically, equities tend to rally during the final trading week of the year and into early January. We remain overweight healthcare.

Monday, December 20, 2021

Volatility has been elevated over the past month, indicating a greater level of uncertainty among market participants. This is one reason why defensive sectors have outperformed recently, which we expect to continue.

Monday, December 13, 2021

The S&P 500 held support around its 100-day moving average along with improving breadth (more stocks starting to trend higher), although defensives such as consumer staples are outperforming. We remai selective with moderate risk exposure.

Tuesday, December 7, 2021

Our indicators continue to suggest a moderate exposure to risk over the short-term, although we are likely to take a more cautious approach heading into the new year.

Monday, November 29, 2021

Key Takeaway Global markets did not rest easy during the U.S. Thanksgiving holiday last week. The S&P 500 declined nearly 4% from an all-time high around $4,700, while the CBOE Volatility Index (VIX) spiked to its highest level since...

Monday, November 22, 2021

Key Takeaway The S&P 500 index remains in an uptrend, although less stocks are participating on the upside. This is seen in the percent of stocks trading above their 200-day moving average, which declined about 7% over the past two...

Monday, November 15, 2021

Key Takeaway The S&P 500 appears overbought after a near 5% rise over the past month. Our indicators shifted to moderate risk-on this week, although we will remain active on pullbacks given seasonal strength for equities. For now,...

Monday, November 8, 2021

Key Takeaway Precious metals, particularly gold, are starting to rise as central banks appear to be in no rush to raise interest rates. Despite plans to scale back asset purchases (quantitative easing), market participants view...

Monday, November 1, 2021

Key Takeaway November is typically a strong month for stocks. Therefore, we are positioned for seasonal upside in cyclical/value sectors based on historical returns. Consumer discretionary, transports, materials, and even clean energy...

Monday, October 25, 2021

Key Takeaway A majority of stocks in the S&P 500 have stabilized and are starting to trend upward. This is a positive development for the overall market, especially amid Q4 seasonal strength. We continue to deploy cash into...

Monday, October 18, 2021

Key Takeaway Global equities staged an impressive rebound from key support levels last week. Our indicators shifted to risk-on, which allowed us to deploy cash into sectors/stocks with relative strength such as materials, financials,...

Monday, October 11, 2021

Key Takeaway Value stocks are poised for further upside relative to the S&P 500. As a result, we are building positions in lagging sectors such as financials and energy. Consumer discretionary and small-caps are also improving relative...

Tuesday, October 5, 2021

Key Takeaway Stocks continue to slide as the market enters a seasonally volatile period. Historically, October tends to produce choppy trading conditions ahead of a seasonally strong November. Therefore, we are raising cash across...

Monday, September 27, 2021

Key Takeaway The 10-year Treasury bond yield broke above resistance at 1.40%, which could benefit value stocks relative to growth stocks in Q4. Our indicators suggest the risk-on rally is stabilizing after the volatility spike last...

Monday, September 20, 2021

Key Takeaway Global markets are under pressure, stemming from weakness in China’s credit market. The S&P 500 broke below the 50-day moving average, which was an important gauge of trend support this year. We expect short-term...

Monday, September 13, 2021

Key Takeaway The S&P 500 is testing uptrend support after a pullback last week. Our metrics indicate moderate risk-on positioning ahead of a seasonally weak period for equity markets. We have a mix of defensive positioning,...

Tuesday, September 7, 2021

Key Takeaway The CBOE Volatility Index (VIX) made a series of lower highs over the past year, supporting the market’s rise to all-time highs. Lower volatility (VIX below 20) is a positive sign for risk-on positioning, although we...

Monday, August 30, 2021

Key Takeaway Equities maintained trend strength in August and avoided breakdowns that would have triggered a shift to cash. Portfolios are positioned for relative strength in small-caps and other neglected areas of the market. The...

Monday, August 23, 2021

Key Takeaway The U.S. high-yield corporate credit spread is widening, which typically precedes downturns in risk assets such as equities. While our technical studies have not signaled an immediate shift to cash, we are starting to...

Monday, August 16, 2021

Key Takeaway The S&P 500 is holding technical support, driven by strong earnings growth and breakouts on the individual stock level. However, the uptrend in equities is narrowing, which could signal a seasonal pullback. We are...

Tuesday, August 10, 2021

Key Takeaway The 10-year Treasury yield is holding support above 1.20% as extreme short positioning in bonds recede. Typically, rising yields create opportunities in banking stocks, which benefit from higher interest income. Value...

Tuesday, August 3, 2021

Preparing for Seasonal Weakness Damanick Dantes, CMT Portfolio Director, Cannon Advisors Key Takeaway The S&P 500’s uptrend is narrowing and could enter a period of seasonal weakness. August is typically a mixed month, so...