On October 13th, within the first 30 minutes of the trading day, we removed half of our hedge and went on a buying spry at the I/O Fund, notifying our advanced premium members of our every move. Our broad market work was suggesting a buyable low was likely, and since then, the patterns we are seeing off this bounce is suggesting that it could be more than another bear market bounce.
The below clip is the first part of our weekly webinar from last week. We dive into what various markets are suggesting about the bear market potentially being over. Each week we look at new information so that we can stay on the right side of the trend. We then go into various tech stocks that we are either buying or looking to buy.
Summary: for well over a month we have been pointing out the complex bottoming process that has been unfolding. Global markets like the Australian XJO, Canadian TSX, and Japanese Nikkei appear to have bottomed before the U.S. markets, and are also suggesting that they want to make one more push to new highs in the coming months. Also, the German Dax and French CAC 40 have broken out of their bear market trend lines, which further suggests that a bigger move higher is underway.
These are markets from different regions of the world all suggesting a meaningful low could be in place. This is accompanied by many of the boring value names in the U.S., like JP Morgan and Caterpillar who are nearly between 30-45% off their lows. These stocks, like many we track, are also suggesting that they could make a run to new highs in the coming months. This is clearly showing up in The Dow Jones Industrial Average. It is actually closer to making a new high than new low, while comfortably above its 200 day moving average.
The reason I am pointing this out is because big trends, like the ones we saw in January and September of 2022, only occurs when all markets are working together and pointing in the same direction. This is simply not happening right now. Instead, we seem to have more markets and stocks pointing higher, with new leadership taking hold.
While some tech names could make new lows, we believe many stocks will make higher lows. Furthermore, there are some tech names that we have identified that are +40% off their lows, and bottomed in May of 2022. We believe choice tech names will continue to lead but it will not be like the stocks we have become so accustomed to in the past.
On the I/O Fund premium siteI/O Fund premium site, we provide weekly one-hour webinars weekly one-hour webinars that discuss what the I/O Fund is buying and selling. We also have a proprietary hedging signal that we monitor in real-time, a fully transparent portfolio of 20+ positions, real-time trade notifications, and more. To get access to all of this, learn more about our Pro and Advanced plans here.