Below is an excerpt from the 320th edition of Zenolytics Turning Points.
This past week was right up there with our performance coming out of the March 2020 lows as well as some of the other major turning points over the past few years.
Whereas during those turns we largely held onto positions, favoring a multi-month swing approach to trading, in the current climate it's critical to capture some of our profits until we get more technical clarity.
Of course, we are still heavily long by any measure after taking off *** and ****. For that reason, I want to see technical clarity develop in the next couple of weeks, otherwise there will be further scaling back to around 100% long in the equity portfolio.
What do I mean by technical clarity?
You will see three separate highlights in the chart of the SPX above. The first green arrow from June of 2022 was when we fell into what I call no man's land. Ideally, the market would have been able to sustain the bottom end of the red band at around 3900.
However, given the liquidity pressures brought on by the Fed, the market wanted a deeper reset tagging the enormous wall of support at the October lows, marked by the CPI reversal on October 13th.
The full 12 page report is available to clients by visiting https://www.zenolytics.com/premium/
Zenolytics Turning Points is 300+ editions in and only getting better. Find out why institutions and individual investors have come to depend on our service through each and every type of market environment. Click here for details.
Disclaimer
This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice.
This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website.
T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing.
Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in, the transmission thereof to the user. With respect to information regarding financial performance, nothing on this website should be interpreted as a statement or implication that past results are an indication of future performance.
