Market When Closed, Sunday 20 October
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A Clean Read
by Alex King, CEO, Cestrian Capital Research, Inc
Weekends are a great time to study markets. Even if you already run dead-inside during the trading week, at weekends you hopefully have done some stuff that doesn't involve staring at a screen all day. You may even have slept. Eaten some fresh food, that kind of thing. Without getting all New Age on the topic, the calm mind and demeanor required to invest and trade successfully is a state that has to be worked on. If you aren't sleeping enough, aren't eating well, aren't hydrated, are drunk and/or high ... you probably aren't doing your best work in the markets. Sometimes in the week, the week gets away from us; at weekends I hope folks get a chance to turn on, tune in, and zoom out.
Here's a clean read on where I think we stand in markets right now.
But before that, a word from our robot buddy.
A Real AI Use Case
I am delighted to say that our new 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:
Short- And Medium-Term Market Analysis
If you want the past-the-paywall content of this daily note - we walk through the S&P500, the Nasdaq, the Dow, the Russell 2000, bonds, oil, volatility, tech and semiconductor, just click here. 7 day free trial available.