Our Point
birthday wishes next time you speak with him. He is truly an amazing father and half-decent business partner as well. I am beyond fortunate to work alongside him and draw from his experience in both life and in the finance realm. Accordingly, Bo will be taking the day off from writing this note, and I (Carter) will be lending you my thoughts and market commentary. We mentioned in the last market note that the 200-day moving average for the SP500 was less than 2% away and that it was likely to be tested sooner than later. The bulls were able to test that level on Tuesday, with a large intra-day push that went right up to the key indicator. However, the advance was brief, and sellers stepped in to turn away the surging bulls. The market has traded lower since that moment and has added to its losses today. The bears are making a stand for now. Last week, we highlighted the possibility of a counter-trend move as options expire today and the overbought conditions warranted a pullback. That is exactly what has played out as we look to finish the week down approximately 1% in the major indices, with nearly all that damage being done today. If the bulls are able to make a stand here near the 4230 support level (shown above), then the market will be in a tight range between the 200-day moving average and the support level that it currently rests on. A break either way could spur a larger move in that direction. Investors are still trying to anticipate if the Fed will pivot from their current hawkish stance at next month’s meeting. The market as a whole is still largely overbought and due for a minor correction or some sideways consolidation at a minimum. While uncertainties loom large, the market’s rally off of the June lows has been impressive. We will be watching the market action closely the next few weeks as the bulls and the bears play tug of war for the validity of the recent rally. We made a minor change in our portfolios this week as we increased our exposure in one of the positions we were already holding. More changes can be expected as we monitor the markets over the next few weeks. Have a blessed weekend and as always thank you for reading.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bills Asset Management (“BAM”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BAM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BAM is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BAM’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.billsasset.com.
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About Bo Bills
Founder and Chief Investment Officer at Bills Asset Management. With over 30 years of experience in managed risk investing, Bo has helped countless clients achieve their financial goals while preserving capital.
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