Though the U.S. market has enjoyed an upside bias for the better part of 2023, we’re not particularly impressed with the recent action in stocks. For a while, we’ve been giving the bulls the benefit of the doubt and kept an open mind for more potential upside, but time may be running out.
Besides the humongous economic nightmares bearing down on us, interest rates, tightening, debt ceiling, yada yada yada, as active investment managers, we just can’t ignore the weaknesses staring at us in the charts. What it’s telling us in more than a whisper is that though the short-term outlook may still slightly favor the bulls, and we mean slightly, the potential downside for stocks could easily engulf any final few ounces of upside bias still hanging around.
Of course, the charts can change, but until they do, we remain parked mostly in cash, with an ever so slight lean to the short side, and will comfortably remain there until we see the eventual break from this sloppy, sleepy six-week trading range, either direction.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.
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