The market is bouncing around. My work does not confirm that a “shocking rally” is imminent.  With being said, the equity market is tactically oversold, and a bounce could happen at any moment.  Importantly, my earnings revisions indicators do not support the likelihood of a powerful and sustainable bounce at this time.  Thus, I am still viewing rallies as opportunities to sell into, raise hedges, or short once they show signs of failing.  

I don’t like to be the bearer of bad news, but it sure looks like there is an earnings cutting cycle that is coming that will accompanied with economic slowdown fears. The combination will likely create a formidable headwind for the equity market and contribute to the next phase of the ongoing struggles of the market, especially all things cyclical. 

That being said, I don’t see an imminent “hide under your desk” scenario like the Tech wreck and the Global Financial Crisis in my indicators.  My research suggests that the leadership to the downside will begin an important evolution in the coming weeks.  My work shows that in the current phase of this downturn has hit growth, high multiple, and tech names quite hard.  Importantly, the next phase will likely see Tech and Growth stock...

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