In this week’s, “Stay in Step with the Market” webinar, Irusha Peiris and Scott St. Clair went over current market conditions, the history of the last 11 Bear markets, and the behavior of previous cycle leaders.

Despite the follow-through day on the S&P 500 yesterday, the number of leading growth stocks setting up for a breakout are still very limited. It is important to use all three market gauges—indices, leading stocks, and your portfolio—to evaluate market conditions.  

Looking at the Growth 250 list, a lot of the better performing stocks are coming from defensive industry groups such as Food and Utility. This is an indicator of where institutional money is going. There is a great value in continuing to use the Growth 250 list in difficult markets; recognizing which industry groups are higher on the list, and how many stocks are on the list overall, are all helpful in interpreting market condition.

As mentioned in the webinar, there have been times where William O’Neil was fully invested ahead of the follow-through day. This is a result of always staying in tune with that market, and interpreting what potential leaders are doing in relation to the bigger picture.

If you have any questions, you can reach a MarketSmith product coach at 1-800-424-9033 or at reachus@marketsmith.com.

 

Best Returns,

George Orlando, MarketSmith Team