Market exposure is at zero, the Buy Switch is off, and Nasdaq is under the 21- and 50-days lines. Even though the S&P and the DOW are rallying, momentum growth investors should not make new buys until Nasdaq holds the 21-day line or a Follow-Through Day occurs. The divergence between the S&P 500 and NASDAQ has been a signal historically of a major market top such as what occurred in the 2000.
Nasdaq started an attempted rally on March 5th, and we are waiting for a Follow-through day. If a Follow-Through does occur, make sure you buy something from your watch list at the of the day.
JPTS has 17 names on the Watch List that are buyable now. For example, SNBR has a raising 21-day and a rising 50 day and the buy point 150.08 after a 4-week consolidation.
Ensure you are placing new buys at the middle of the day because the market supply and demand characteristics are distorted at the open and enter your stops at the close as well due to the same reasons. As always, honor your stops and take all signals.
There is rising inflation with supply shortages already in copper, lumber, chips, palladium, etc. Bonds have been a 40-year uninterrupted bull market since 1980 and this appears to be ending. This reminiscence of the 1970s when LBJ ushered in the Great Society with a dovish Fed. Market participants have yet to account for this scenario.
Upon his inauguration in 1969, Nixon inherited a recession from Lyndon Johnson, who had simultaneously spent generously on the Great Society and the Vietnam War. Congress, despite some protests, went along with Nixon and continued to fund the war and increased social welfare spending.
The spending that is occurring now and what is likely to be passed is far larger than the spending of the 70s. What is even worse than the 70s, currently the Federal budget deficit is 130% of GDP and back then the deficit was about 40% of GDP. Interest on the debt is the 4th largest item after Medicare, Social Security and Defense spending.
The Treasury will need to sell massive amounts of bond and eventually investors will doubt the solvency of US debt.