March 30, 2023

Market Technicals

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By Peter Bower

Throughout this past selloff, the stock market technicals held up well. Money flows are now 90% positive. Other supporting indicators including advance/decline ratios and the market averages not breaking the 200-day moving average are also encouraging. The snap back rally this week, after all the fear surrounding banks last week, tells us a lot. There is still a lot of money out there looking for opportunity. The bottom is in.

The Bull and his partners do not only rely on market technicals to make important investment decisions. They are merely another tool we use along with the fundamentals. After all, we are long-term investors. A three-to-five-year time frame is what we work with. Technical information is only useful for periods under six months. However, for risk management it is very useful. We would also like to add new money during up rather than downtrends. Stay steady my friends.

The Lonely Bull