Daily Market News - 30th Sept
Daily Market News
30th September 2021
What to Expect in October
Well, September wasn’t exactly a month for party balloons and rocket ships was it. Coming into the month, I’m sure most of us are aware of the below chart (I’ve posted it enough over the years) and it’s a chart I like to communicate to my clients and members every year… thinking back, I can’t really remember a September I actually enjoyed, but being aware of the September nonsense oftentimes helps with the mental side of things.
The good news is, October for the S&P500 dating back 70yrs isn’t too bad… it’s not the best month, but not the worst, after September, I’d gladly take it.
Rotations
Inflation, the Fed and rising rates seem to the narrative of choice for mainstream media just now, but as the average Investor, how can you navigate things and look to position yourself?
Charts are of course my thing, and I prefer to rely on hard data rather than rely on “feelings” and I also like to pay attention to areas of the market that are out performing the S&P500 or at least giving indications they’re about to start out performing and I have useful tools like the Rotation Graph at my disposal to give a good visual of what’s ACTUALLY going on.
Let me be the 1st to say, the chart is NOT saying Technology is finished… Tech isn’t going anywhere, it can (and likely will rebound soon) and it will ultimately head higher, but what the chart DOES tell me, is that smarter people than I are positioning themselves in the more value oriented names (think Financials, Regional Banks, Energy etc). How long the rotation lasts… 1 week, 1 month, 1 year… I have no clue, but I’ll pay attention to the charts and be watching closely.
If we can all agree that we’re all ultimately looking for Relative Out Performance, it would make sense to me that we look underneath the surface a little bit and see what names might be setting up for a move higher.
What’s the harm right?
Financials - XLF
Rising Rates
In a rising rate environment, banks stand to do quite well, so it seems pretty logical to start there. ZIONs Bancorporation N.A (ZION) was provided to clients and members LAST week in preparation for a break out and I like it provided it stays above $60.
It’s not a small bank with a 10.3B Market Cap and an attractive looking P/E Ratio breaking out of a 6 month base. It may be worth some due diligence.
I should add, this is just 1 chart of MANY that are breaking out and showing strength. There are lots of options in the banking sector just now.
If you enjoyed the brief 2min read, feel free to let me know if it’s something you’d welcome on a more regular basis by subscribing below. I’m hoping to put out 1 or 2 of these a week.
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