Enjoy It Now, But Be Ready When The Music Stops
Asbury Research’s Stock Market Update & Asbury Investment Management Video is a free report that we use to keep in contact with existing clients, and those who have previously asked for information about either Asbury Research or Asbury Investment Management (AIM). Feel free to contact us anytime for further information about our services for professional and private investors.
In our previous January 23rd Stock Market Update & Asbury Investment Management Video, we pointed out that our early November upside target of 3850 in the benchmark S&P 500 (SPX) was met on January 20th. Corrective declines often begin once upside price targets have been met as it triggers profit-taking, which is just aggressive selling. The chart below shows that this was indeed the case this time as SPX collapsed by 156 points or 4% in just three days,between January 27th and 29th, on quickly deteriorating market internals.
However, the chart also shows that SPX stopped on a dime at the 50-day moving average, a widely-watched minor trend proxy, and rocketed back the other way, rising by 201 points or 5% by Friday (Feb 5th) to close at new all-time highs. We attribute this crazy near term volatility to the market’s current Pavlov’s Dog-like “buy the dip” mentality, which it has been “trained” to do by an extremely accommodative Federal Reserve which has all but promised to protect asset prices from declining.
One day this “buy the dip” mentality will stop working, just as it did in February and March of last year, and the results on investor portfolios could be devasting. This is why we put such an emphasis on agile, completely-objective data-driven models like our Asbury 6 and Correction Protection Model (CPM) to help keep us in the market when the buy the dip mania exists as it does now, but also protects us when the inevitable correction begins.
Our latest video below shows how we have navigated these recent market conditions for client portfolios in real-time.
Asbury Investment Management (AIM): Our Latest Video
Asbury Research Ideas, Expertly Managed
Here is our February 5th Video Review, which explains how we have recently utilized Asbury Research’s market analysis and investment ideas to professionally manage client portfolios.
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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 carefully consider whether such trading is suitable for you in light of your financial condition.