In this weekend's 340th edition of Turning Points we have a 9 page note detailing the decision to further add to our long exposure with two new positions as bullish setups continue to present themselves.
What follows is an excerpt from this weekend's note.
When looking through the charts it becomes apparent that this market is, generally speaking, a genuine unmitigated mess.
Every stock, sector and etf is going in its own direction, mostly either to the downside or sideways, without much in the way of volume, within an overall directionless pattern that doesn't seem to desire any sort of conclusion in the near-term.
What is holding up the markets continues to be a handful of issues, mostly mega-cap tech, that are only growing in strength as the days and weeks wear on.
It has been a fruitless endeavor for investors to attempt to guess when this phenomenon of extremely narrow leadership will end.
By the looks of the charts of AAPL, MSFT, META, GOOG and NVDA, it seems that investors are rather optimistic about this coming earnings season. All of this in the face of continued doubt by a majority of investors as to the voracity of the current rally due to a host of factors, most pressingly the complete lack of participation of just about every stock but the elite generals, quickly followed by recession fears, stagflation fears, as well as fears of continued chaos in the banking sector.
Price action in the Nasdaq, along with the key names that lead that index, are telling us that we are past the point of falling into the trap of doubting what is occurring on the basis of the numerous negative fundamental factors that exist.
Put as simply as possible, price action among the narrow few that are leading the market higher is telling us, once again, that something is afoot that market participants have yet to realize.
Just as the S&P topped in early February at 4200 without explanation, followed by the March banking crisis, factoring in negative developments a month prior that were yet to be seen, the Nasdaq is more than likely factoring in positive developments that are also yet to be observed.
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