Transcript
All righty, Welcome to Tuesday, I am wearing the red shirt today, because the S&P 500 was down almost 2.8% for the day, which is unfortunate. But the the most interesting thing about today was really kind of what the leadership was. And then I’ll give you some ideas for where I think things might go. But I’m following hundreds of different targeted indexes, and only a handful were up. And they were led by some very unusual players, the targeted index for the Philippines, United Kingdom, Japan, Saudi Arabia, United Arab Emirates, and South Korea. Those are some of the only ones that were up today, these are not the targeted indexes that lead us out of this, you know, recovery period. So very unusual.
I really looking at this and spending the weekend digging through all these charts, I don’t really see a big rotation going on, I just see selling happening. And it’s mostly profit taking. You’ve got companies that are reporting record earnings and record sales, and there’s prices have come up quite a bit. And now people are taking money off the table, I believe we’re going to fill back all the way back down to the all time high that we set back in February. So we had that big burst I was hoping for and now it looks like we’re gonna fill back that on the way on the way down, I think there’s going to be some buying opportunities there. But we do have to watch out for change of trend. So today, the price did close below the 20-day moving average and the 20-day moving average did smooth did move down slightly. Those are both warning signs of change of trend, but just the beginning, the 50-day moving average, the 200-day moving average are still up and we’re still you know doing okay, as far as that goes.
I think the targeted indexes that we’re in, should do very well going forward here. I do think some buying will come in. But we have to watch this is a point in time that you have to pay more attention, watch for trend change of trend, watch for rotation into different areas that we’re not really involved in right now. And so we did make a couple of changes to some of the IRA portfolios today, just kind of moving into some consumer discretionary, which I think is an area that’s really starting to take off, and whatnot. So you’ll see some of that come through, but more lateral change as far as that goes. But I’m very interested in what’s happening with Home Builders that did okay today for quite a while before it kind of fell down.
So I think there’s some categories that might do well. But mainly, I think we just need patience, and just need to wait and see how this thing’s going to play out and see if there is some bottom fishing that comes in and drives this up. We’ve had several big downturns happen in this recovery, and all of them have led to higher numbers. So let’s see what happens here. So looking forward to seeing what happens tomorrow, and I will talk to you then. Thank you very much.