US Markets Stall Near End Of July As Global Markets Retreat: Are We Ready For An August Surprise? – Investment Watch investmentwatchblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentwatchblog.com Daily Mail and Mail on Sunday newspapers.
ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
August 3, 2021 | US Markets Statll Near End of July as Global Markets Retreat – Are We Ready for an August Surprise?
Chris Vermeulen Chris Vermeulen has been involved in the markets since 1997 and is the founder of TheTechnicalTraders.com. He is an internationally recognized technical analyst, trader, and author of the book: Technical Trading Mastery. Chris has developed trading strategies that incorporate technical analysis, position-sizing, and risk management to boost performance while reducing portfolio risk.
One thing that seems to be certain in the markets right now is the past hyper-bullish trending which appears to have weakened since early 2021. As a result, the longer-term Custom Indexes we use to help gauge and understand market trends are showing a very clear weakening of trends.
We recently completed some interesting research related to one of our newest Custom Indexes – the Commodities to Smart Cash Index (C2SC Heat Index) – weighted by the US Dollar and VIX. We’ve been reviewing this new index for months watching it to see how it reacts to various trends in Lumber, Gold, Treasury Yields, the Smart Cash Index, and other weighted values. Recently, we added the Fed Funds Rate to this chart and suddenly things took on a different perspective.
We had drawn horizontal lines on the Commodities to Smart Cash index highlighting historical high, low, and confluence price levels. Historically, when we see a chart that channels in a sideways range, one can often identify high and low price thresholds while also trying to find a confluence level (where a continued rise or decline in price is likely to continue). We can see how the US Fed reacted to rising inflationary concerns almost immediately as the C2SC Index rose near or abov
Several years ago, industry observers predicted that direct indexing would be the next wave of innovation to upturn the asset management industry, equal to the revolution of exchange traded funds and the rise of mutual funds prior to that.
Institutional investors have always customized their own portfolios, and separately managed accounts have long been used as an investment wrapper for wealth managers to richer clients. But for retail investors and most financial advisors, direct indexing or tweaking an index-based portfolio around the individual needs of the client was a small part of the investing world and few had shown an interest.