Sideways Market, Tech Uptrend intact & Central Banks Make Waves

June 25th 2023 UPDATE

Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.

-

Here is what the charts are telling from my POV.

We had a negative week after several consecutive positive ones, which is normal.

When looking at the SP500 Equal Weight, I see a market still trading in a range or sideways.

More importantly, the equal weight index underperformed the SP500, indicating a broad deterioration compared to the largest stocks in the market. Not a good sign.

When looking at the Nasdaq 100 Equal Weight, although it underperformed the Nasdaq, I still see a clear uptrend in the chart:

Over the last few days, some European Central Banks raised interest rates.

Looking at the major equity indexes around the world, it was an overall negative week with indexes weakening.

In a nutshell:

• I see the uptrend in stocks still in place, especially in tech stocks.

• Nonetheless, we are still in a restrictive monetary policy environment around the world, which is not supportive of stocks.

• Until proven otherwise, I still see the indexes grinding mostly higher within a sideways market.

• If the data from the economy does not weaken too much or too fast, we might continue witnessing a market that keeps climbing a "wall of worry."

My POTS (portfolios)

10X LARGE CAP MOMENTUM POT (link)

• My LI 0.00%↑ order was triggered and now I have 5 positions in my portfolio;

• I am raising my Stop Loss for $OTEX to $38.7

• No other changes or orders for the portfolio this upcoming week.

That’s all for the week. Below are my changes to my 10X SMALL CAPs momentum portfolio. (subscribers only)