You are a free subscriber to Me and the Money Printer. To upgrade to paid and receive the daily Capital Wave Report - which features our Red-Green market signals, subscribe here. Momentum - Yellow (Be Cautious)Interesting moves despite NVIDIA losses... Be wary of a fade now that we're back at key moving averages.
Dear Fellow Traveler: A little bit of a change up today with markets squeezing higher (as predicted on Sunday night at the Capital Wave Report). I’m issuing this statement for everyone because it’s a cautious time. When we return to an equilibrium environment on momentum, we are largely at the mercy of… sellers… The SPY has added a little more than 2% since that note, but it all comes back to last week and Japan’s stimulus… Commodity Trading Advisors could sell into this strength if they want…
Goldman noted the other day… There could be a wall of stocks on the verge of being sold. Their positioning is very high… and it’s in a range over the last seven years where they’ve exited from little tantrum periods… We now have basic materials stocks picking up again on the back of Japanese stimulus. And - as I noted on Market Masters this morning - we’d pushed back to equilibrium on the Poor Man’s momentum for the S&P 500. This was the intraday reading before the bell… and our daily just kicked up into neutral…
The Russell 2000 is still red, but selling pressure appears to be falling much faster… That doesn’t mean that we’re out of the woods, and we’ll see if funds sell into any sudden buying strength. A lot of tech names are under pressure - but healthcare, real estate, and materials are giving us gains. Volume has picked up today, which is a healthy situation, and the S&P 500 ETF (SPY) has reclaimed its 50-day and 20-day moving averages. However, this is still a lower volume behavior as evidenced by the Money Flow Index…
As I said Sunday night, conditions were ripe for a squeeze, but I didn’t really expect the markets to hammer tech stocks even more. I’ll report back as we go… Once again… if you’re not a member… I’ve made it easy for you for Black Friday… But for now, I have to wash both of my dogs… They have to be groomed for Thanksgiving… Stay positive, Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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