Trading with AlphaVL: The Newsletter for Growth and Momentum Investing

 

 

 

AlphaVL Trading: The Key to Profiting from S&P 500 Industrials.

 

Ride the wave of the S&P 500 industrial stocks, Caterpillar and Freeport-McMoRan are key players, 53% gain for Caterpillar stock since Q3 along with a 63% rally for Freeport-McMoRan shares since Q3.

Friday saw market breadth advance as the market responded well to December's inflation data weakening, with Initial Jobless Claims coming in below expectations. The Fed Watch Tool points to a 96% probability of a 0.25-point hike in the Fed Fund rate at the FOMC Meeting ending February 1. This has investors happy as growth and momentum stocks are coming back into play and falling rates have boosted market sentiment, allowing the market indexes to move forward despite an otherwise sluggish start; the 10-year Treasury fell back below 3.5% to close at 3.43%, while the two-year T-Bill rate dropped to 4.12%. Growing market confidence appears to be well placed for the time being, with market breadth advancing despite worries of a slowing economy.

As part of our master watch list we track the daily activity of five major indexes and fourteen ETF’s, primarily the eleven major sectors plus three specialty sectors.  The status of each is set forth under the tab labeled ‘Unsorted’ which is part of our Spreadsheet which is attached.  

Today we have added a separate tab labeled ‘Major Markets’, here you will find our current call, which is produced by our market model, on each of the five markets plus additional information covering the models  win/loss factor, average days held and most recent signal date by index. 

As of Thursday January 12^th, our model had turned Bullish, refer to the ‘Summation’ tab for further detail on the model.  The Major Markets tab contains the data specific to each index along with a chart laying out the Buy/Sell calls and supporting indicators for each index. 

Included with this edition are ten trade ideas for your consideration.  Here also you will find the summary data for the models’ performance with each underlying along with the set up which we will be watching when the market opens Tuesday January 17, 2023.  Please refer to the Disclaimer included with the spreadsheet prior to trading.

In all cases where back tested data is referred to, the time period of the test is from January 2017 through December 2022.

 To access the current copy of the data behind our trading please follow this link: Trading with AlphaVL

Good luck and Good Investing!