Research Excerpts

Asbury Research’s Stock Market Update & Asbury Investment Management Video: August 7th, 2019

Posted on: Wednesday, August 7th, 2019

Risk Off Status As Of August 2nd, Watching Market Reaction To Major Support

In our previous July 24th update, we pointed out that the tech bellwether NASDAQ Composite Index (COMP) had spent the previous 11 sessions trading completely above its 8133 August 2018 high — after failing a previous attempt to do so back in late October.  We identified this as an emerging major bullish breakout by this market-leading index.

However, we also warned investors that the US stock market was in the 10th year of a major bull market in US stocks that typically only lasts 4 1/2 years, and that August and September were  two of the three seasonally weakest months of the year based on data since 1957.  Amid these conditions, we said we were:

“…monitoring the market very closely, with a focus on protecting subscribers and investor assets against an overdue — and potentially nasty — decline.”

Table 1 below shows that — just 8 sessions later  –– our Asbury 6 key market internals turned Negative as of the market close on Thursday, August 1st.  This indicated the “under the hood” condition of the market had turned bearish, and that market internals were the least conducive to adding risk to portfolios.  Previously, at least 4 of the 6 had been positive since June 7th.

Table 1

In addition, our Correction Protection Model (CPM) shifted to a corroborating “Risk Off” status as of the open on Friday, August 2nd, warning of further market weakness.  The benchmark S&P 500 (SPX) subsequently collapsed by 124 points or 4.2% over the next 2 sessions, and is now trying stabilize from major underlying support near 2800.

How the US broad market reacts to this support level, which we will gauge by the day-to-day condition of our Asbury 6, will determine whether this week’s sharp market decline is a new buying opportunity or just the beginning of a much deeper correction.

The video below shows how we have used Asbury Research’s recent analysis and strategy to manage investor assets, in real time, for our Asbury Research Management clients.


Asbury Investment Management (AIM): Our Latest Video
Asbury Research Ideas, Expertly Managed

Click Here for our 08/07/2019 Video Review,
which explains how we have recently utilized Asbury Research’s market analysis and investment ideas to professionally manage client portfolios.

AIM offers a unique approach to investment management that is dynamic, based on the current condition and risk/reward profile of the financial markets, rather than on whatever your investment allocation may have been pre-determined to be.

If you like our approach to investing, please email or call 1-844-4-ASBURY (1-844-427-2879) for further information about individual managed accounts.

This communication is for informational purposes only. It is not intended as investment advice, or as an offer or solicitation for the purchase or sale of any financial asset.  No inferences may be made and no guarantees of profitability are being stated by Asbury Research LLC.  The risk of loss trading in financial assets can be substantial. Therefore, you should therefore carefully consider whether such trading is suitable for you in light of your financial condition.