Money Flow Model

The money flow model that we follow is getting more positive and looks like it will post a buy signal very soon. That together with the dramatic oversold condition in our stock market tell us that a significant rally is close. Additionally, the exceptional performances of markets in Europe and elsewhere should reinforce a turnaround here. The Bull and his partners are not traders, but we want to know the technical condition of the stock market so we can time sales and replacements.

This new year has started off with a bang! Volatility, long predicted by us, has increased and could unnerve investors if they did not expect it. Expect more of it. It is simply the nature of the new federal administration’s methodology that generates plenty of surprises and aha moments. If prepared, investors can use this to their advantage.

Thankfully, focusing on important fundamentals is more important than ever with all the investment noise in the atmosphere. There are both winners and losers in any dramatic change. We are sorting through those. In some cases, it is simply too soon to tell. We will respond as necessary. Take the long view and stay steady my friends.

-The Lonely Bull