There are signs of life in the U.S. Equities market. While it may not see that way when following the downward trend of the Dow Jones Industrial Average, there are rumblings in the deeper bowels of the market. At least that is what the Bullish Percent Indicators are telling us. While I think it unlikely we will see the market bottom before April or May, this is a time to be alert to where one might begin to invest available cash.
The data below is not exactly easy to read. If you look at all the 3/20/20 percentages you observe that all moved up. However, all are still over-sold and we have not seen the growth of the Corvid-19 exponential curve slow down. These next few weeks are critical. Unemployment is soaring and that is yet to be reflected in the BPI numbers.
Staples moved higher as the population still needs basic supplies to survive. The good news is that over half the sectors are now showing bullish signs as six of the ten have X’s in their right-hand column. This could be what is known as the “dead cat bounce.” Pay close attention to these data tables over the next two weeks to a month.
The latest Kipling signals are to invest in SH or short the market. I post this information daily in the Forum. Look for the Canary Portfolios for this information.
Three different model portfolios are up for review next week as I will update the Schrodinger, Galileo, and Einstein. Also look for performance data to be posted later today.