Buying Binge

Please click here for a chart of  S&P 500 ETF () which represents the benchmark stock market index S&P 500 ().

Note the following:

  • The chart shows the stock market is hovering near the channel low band.
  • The chart shows that the market is no longer overbought.
  • Investors need to pay attention to consumer behavior because the U. S. economy is 70% consumer-based.
  • The consumer buying binge continues for the time being even though consumers have a lot of apprehensions about inflation. Consumers are willing to pay higher prices.
  • October Retail Sales came at 1.7% vs. 1.2% consensus.
    Retail Sales Ex-auto came at 1.7% vs. 0.9% consensus.

Rents Surge

Rents for single-family homes surged 10.2% in September year over year. This is clear evidence that the Fed’s policies are beginning to hurt working people. The Fed uses the ruse of helping the low-income people to justify its money printing and zero interest rates.

Bitcoin

Bitcoin is selling off as Marathon Digital () received a subpoena for violations of securities laws.

Momo Crowd And Smart Money In Stocks

The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial) stocks in the early trade.  Smart money is 🔒.

Gold

The momo crowd is 🔒  gold in the early trade.  Smart money is 🔒.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is 🔒  oil in the early trade.  Smart money is 🔒.

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For longer-term, please see oil ratings.

Markets

Our very, very short-term early stock market indicator is 🔒.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $1873, silver futures are at $25.35, and oil futures are at $81.34.

S&P 500 futures resistance levels are 4713  and 4900: support levels are 4600, 4460, and 4400.

 futures are up 51 points.

Protection Bands and What To Do Now?

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold existing positions. Based on individual risk preference, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades, and short to medium-term hedges of 🔒,  and short term hedges of 🔒.  This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.

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It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.