Market On Close, Tuesday 22 October
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Directionless Above The Waterline, Lots Going On Below
by Alex King, CEO, Cestrian Capital Research, Inc
The equity indices are mostly doing nothing right now other than causing folks to freak out either in the morning (over-levered bulls fretting that It’s So Over Right Now) or the afternoon (over-levered bears cursing “Manipulation!”). But below the waterline we have $AMZN and $MSFT curling up ready, it seems, to Rip It Up And Start Again, whilst semiconductor outside of a few choice names continues to languish. Tech continues to lag; I think it is due to catch a bid even if that doesn’t happen for a little while.
The charts we post in this note each day - for our paying members only - are designed to help you make sense of what is going on. They aren’t designed to persuade you of one outcome or another. They are designed so you can make a Plan A and act on it whilst knowing all along what your Plan B would be, and when that would kick in.
If you’d like to know which way Cestrian personal account capital is pointing at any given moment, and if you’d like to know when those accounts place trades in the stocks and ETFs we cover, before the trades are placed? Join our Inner Circle service. You can learn all about that here.
A Real AI Use Case
Want to know what has stayed focused this last week and has taken no notice whatsoever of the psychodrama? Our SignalFlow AI service, that’s what. And that’s because it’s run by AI, not by the wetware.
Our SignalFlow AI service has gotten off to a flying start. This has been our fastest-selling service to date and my conclusion from that is that a lot of people, myself included, are looking for emotionless ways to assess market direction. All of us have our own methods of doing so - you see my methods posted in this market note each and every trading day - but having a robot buddy studying the same thing and reaching its own conclusion is a great thing in my book.
SignalFlow AI sounds complicated, and the underlying model is complicated, but the output is simple. The service - at the low launch price - is focused very simply on the S&P500. The outputs are, risk on, and risk off. Risk on = buy or hold the S&P500 (the model uses $SPY but other ETFs would work too); risk off = sell the S&P500. You can use this to move capital into and out of $SPY, and/or you can use it to help you assess the overall risk environment as regards other stocks and ETFs you may hold.
Want to take advantage of launch pricing? Read more here: