Dear Flip Users,
Last week Bitcoin fell and the market in terms of the S&P 500 posted small gains. Oil and gas remained steady while the cruise lines did better due to some upgrades from Goldman Sachs. Banks remain in a holding pattern but seem poised to go higher given the known recovery coming in the economy as covid, at least in the USA, remains subdued.
The main thing currently noticeable from the math is that the market is highly overbought in regression methods and many other metrics. However, this is offset by the tremendous momentum that remains intact over the stock market’s future. Investors have more money in the market than at any other time in the last 50 years. Mutual funds have relatively little cash is a contrary signal suggesting that the market has very little left to keep it propped up currently. In the end, the bad and the good from the “fundamental news” that we hear generally lends itself to the market staying buoyant for the time being.
The one thing we at iFlip care about is the A.I. SmartFolio Technology. Currently A.I. modeling is suggesting something different. It suggests that risk and reward are grossly different. This is why the primary S&P500 A.I. SmartFolio model (aka Tactical Model) has produced a sell signal. This is one of our most popular and successful A.I. SmartFolio’s. Currently, this A.I. has sold off and is looking for a better entry point. This point might occur in the short term with a relatively small retracement. So be on the lookout for when it buys back in.
I remain cautiously optimistic about the market in general despite how scary it appears to be. I have learned that the math (aka A.I.) in the end generally will beat out my best guestimates. Investing with a plan, like the tortoise and the hare, will always win the race…
Until next week…