Astute Strategist Blog

Market Context
Happy Sunday,

Shakespeare once said “All that glitters is not gold”, this market seems to glitter endlessly and investors on a buying frenzy as if to say there’s no reason to sell. After the first week in April, the S&P 500 is close to record highs and on Friday, having closed at 2892, we are now just +40 points away. Will we get there or is this market about the take a breather?

Truth be told, I would not be surprised to see this market keep going. Considering the fact that capital flows have nowhere else to go, it really is just a matter of time before we see an attempt to testing the record highs. The key takeaway, in my opinion, is what happens after that? Being long the market really pays when we are in a trend like we have been since the start of the year, but what do we do once there is selling or the idea of political warfare?

Take into account, the US having clumbsy thumbsy President, talks of trade wars, the closing of borders, tariffs on anything the President thinks of, where does one put their monies. Are indexes really the best way to go? Here is some food for thought, year to date the S&P 500 is trading up some 15%. Now take a stock like Apple Inc into the mix, it is trading up 25% year to date.

It all starts and begins with the flow of capital and price action. Astute Insiders saw us get long Apple a few times in just the past couple of weeks and yielded an average return on capital of 15%. Can this happen each month? Who knows, but it is what we aim for.

For now, this market continues to show very strong signs of it remaining bullish, and so long as this is the trend we will remain long, but it is no secret that the market is showing signs of upside exhaustion. Also, we must remember that earnings are starting to kick off in the next week so will those be the catalyst for this market to take a breath? Remain vigilant and be ready to take action in protecting profits in the short term. Long term, as I have mentioned to many Astute Insiders, this market is very bullish. There is simply nowhere else for capital to move to when being put to work.

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