Bringing The Pieces Together

Why We're Unique (PDF)
Our Belief System (PDF)
Member Login


Today's Commentary
Thursday, November 15, 2018

That's the consensus view among Wall Street strategists regarding the selloff that began in early October.

And they may be correct. But call it what you will, it doesn't change the fact that, during times of market stress, like what we're experiencing now, everything can look rotten to investors.

But the thing about market corrections is that they are normal.

Although I have yet to meet an individual investor who is excited to see the stock market sell off... corrective actions are necessary because they bring balance to the markets -- especially when investors become too complacent.

That's exactly what had occurred earlier this year when the stock market became excessively overbought. What followed was one of the fastest corrections in 80 years -- a swift 10% decline.

Although the lows were made in less than two-weeks, the following ten weeks saw two retests of those lows before stocks found their footing and moved to new highs.

Now, the stock market is considered to be excessively oversold.

And although the major stock market averages such as the S&P 500 are trading above their recent from late-October lows , many of the internal breadth indicators remain in oversold territory.

One of those indicators tracks how many stocks within the NYSE Composite are trading above their respective 30-Week (or 150-day) simple moving average.

A couple of weeks ago we shared a graphic which showed that less than 20% of stocks were trading above this very important level.

Today the indicator is still very depressed, with just 22% of the stocks trading above their 150-day moving average.

We at FFCG are nearly 100% in CASH with several Sector Funds and TWO Stock market inverse funds.

Phone: (502) 442-0363, Fax: (502) 442-0367
Click here for BBB Business Review
9215 Coventry Ln Louisville Ky, 40219