Trade Alert For Equity and Sector Models
Following yesterday’s Fed meeting, stocks continue to show more resilience to weak economic news and earnings. Such increases our confidence that a tradable low is in place. Whether it’s the market bottom for the cycle or just a bounce is the big question. The 50- day moving average and other lines of support will help us manage risk if the bounce fails. Despite the purchases, we maintain high levels of cash as we are skeptical the Fed will pivot as soon as many investors expect.
With bond yields falling and investors growing more comfortable that the Fed will temper inflation, the market is showing a preference for growth/tech stocks.
- Buy .5% AAPL
- Buy .5% NVDA
- Buy .5% AMD
- Buy 1% AMZN
- Buy .5% MSFT
- Buy .5% GOOG
- Buy 1.5% XLK
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.