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Broad Market Outlook
The market really caught a bid last week as there were some extreme snap backs after major recent support broadly had broken the week prior. Just when things looked the most bleak, its right before its about to get sunny again.
Now we are still far from out of the woods and if we don't manage to put in a new pivot high, in the SPY that would be breaking above 420 which is still quite a bit away, then there still could be some clouds looming.
Overall from a long term standpoint this is starting to be the time to start getting more aggressive from the hands off more passive approach we have taken the last few months.
The overall market at its lowest dropped 25% off its high this year, compared to the 2020 bear market where the market dropped 35%.
Bear markets will not be identical twins, yet we often look backwards to anticipate the future, resulting in most bear markets acting more like siblings that disagree on everything but dress the same.
We are not trying to catch bottoms as its often a fools errand where we give away stock to quickly into the first bounce but starting to increase those weekly savings towards buying the broad market could be a wise move down here.
It may be hard to think back to when Energy was so hated during 2020 when the VDE was trading under $40, yet that was the time to take advantage as we said during that time in these newsletters. Only now with it 300% higher is it now everyone's or was everyone's best friend.
The market broadly is hated right now across the board, most stocks are banged up but there are far more bases starting to form and stock snapping back 5-15% off recent lows after shaking out pivot lows then stocks continuing to bleed and free fall lower.
We most certainly can still fade this weeks action and I am not saying load the boat Monday morning, nor would I ever suggest that but when everyone hates the market and the outlook is bleak, these are often times to quietly start picking up shares when no one is looking if you have a 6-12 month time horizon.
If you want to go over your long term ideas this week set a time here and we can form a proper game plan!
From Bennett
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
Mid Caps
Small Caps
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31-1 Handbook Trade
Since the market has been crappy, I want to offer you a 31 -1 trade!
We need to get our reviews up, so we would like to offer you a trade, if you invest $9 in our 3 kindle books and leave us a review for each. We will offer you a $250 credit towards the Trading Experts Comma Day Watch!
Once you order and leave the 3 reviews please shoot me a direct message on GroupMe!
So far 31% of the watches that we have ordered have been scooped up! If you would like to get on the list and save 50% off this watch and watch travel case once the finished products arrive in a few months, take advantage while you can because once we have them in stock, we will only offer them at full price!
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
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Tax Experts
We have reviewed quite a few tax returns so far and have yet to find one where we could not have added value.
We recently found a member who paid a tax penalty because his tax guy put he contributed $12,000 into his Roth when he only contributed the max. He paid a penalty for this persons mistake without being aware and his tax guy made up the most ridiculous excuse, it was just embarrassing.
What is the worst case of getting a 2nd opinion from someone who has successfully filed over 4,000 tax returns?
Let's have a second look at your tax return, if we can't find a way to save you taxes on this or next years return, we will give you a months membership free.
Worst case you get a free months membership!
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Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
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Monday Group Calls
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Big Picture Set Up
Increasing Long Term Weekly Saving
The last bear market we experienced dropped 35% from peak to bottom and within 6 months we were right back at highs. As much as each new bear market is not going to perfectly mirror the last, they are often somewhat related in some capacity. We are not trying to catch bottoms as its a fools errand and a process that typically ends up with giving away the gold into the first bounce. By starting to increase your weekly savings after most of the pain has already been experienced, you will be poised to take further advantage if we continue a bit lower and will be happy in 2023 that you started to do so now when most are saying they will wait till its safe when we are back at highs and 30% higher.
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Traveling Experts
We have a few exciting experiences planned for the year ahead. We hope you find a trip that sparks your interest to come enjoy and network with other like minded members!
Dates:
2nd Annual Private Track Day October 6th 2022
6th Annual Vermont Retreat Jan 19th to 23rd 2023
3rd Annual Private Track Day June 9th 2023
3rd Annual Long Beach Island June 15th to 19th 2023
1st Annual Private Track Day
Our next private track day will be this October!
2nd Annual Long Beach Island
If you would like to learn about our upcoming Trading Experts Trips reply Trips to learn more!
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Terms and Conditions Trading Experts LLC (“Company”) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or urgencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.