SHOMP

It appears markers are sashaying towards new highs, seemingly immune to all of the horrors. The earnings are all that matters, after all and America the Empire is global and wide and pervasive. Our largest companies profit from the hegemony and bring back their earnings and convert them back into robust dollars.

Meanwhile, the oversold algorithms in Stocklabs appears to have called a bottom last week. I must admit, it’s never easy blindly following these oversold signals, as it feels akin to walking into a building on fire. ‘Why the fuck should I buy now, because the computer said so? No thanks, pal.’

But here we are spinning higher.

Our 12mo duration for the $QQQ is the one I was waiting to see materialize but had in mind we might be seeing a character change in markets and had prepared for an even lower algo reading. When I see these signals my chief concern is always ‘is this dip like the others or unique, like COVID or the financial crisis or even the Russian invasion rout?’ Every so often markets will blow through the oversold and COLLAPSE the fuck lower and it’s because of those occurrences that I remain on edge about them.

All in all, the data is pretty convincing over the past 5 years.

My assessment is, markets should continue higher into mid next week.