macro-monday
After one of the quickest and deepest sell-offs the market has ever seen, we anticipate a market rally. We have learned that when the Chaikin Bull vs Bear ratio dips below .50 rally's become more likely. We ended the week with a ratio of .09, one of the lowest readings we have seen since we began tracking back in 2014. Granted we've been in a bull market since, we do expect a rally off the lows, whether or not it's sustained or the lows are in is a different story. At the least, we believe the lows of last week will be tested, and COVID19 is not going away anytime soon.
It should be no surprise that money found it's way into healthcare last week amid the Covid19 sell-off. Everything else was sold mostly indiscriminately,. including defensive yield seeking plays, like utilities. We spent the bulk of our meeting today brainstorming how to forward test a dividend portfolio driven by the Chaikin Analytics platform in paper money. If we are seeing the first scenes of what will end up being act 1 of a bear market, we want to be prepared to test a plan that will seek dividend above all else. We hope to reveal are plan and rules soon. Stay tuned.
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