Mixed Signals

Investors,

This market is weird.

In fact, something has been “off” for awhile now.

The strangest part about it is that there’s nothing glaringly wrong.

But there are subtle hints & awkward aspects that continue to give me a weird feeling.

As soon as concerns start to dissipate, they re-arise in new forms.

I shared these concerns for the first time on December 14th, when I wrote “Concerning Signals Are Flashing”, and the market has done basically nothing since then…

Some constructive behavior has taken place, but it was followed by deterioration.

Bulls can point to their preferred datapoints.

Bears can point to their preferred datapoints.

So I find myself somewhere in the middle — cautiously optimistic.

How much should we read into bland price action during holiday-shortened trading weeks with low volume and immaterial macroeconomic data?

I wish I knew.

You might be reading this and thinking “if Caleb is inconclusive, why should I pay for this report and the rest of his research?”

It’s a fair question, but I’ll tell you why… I’m transparent, almost to a fault.

I won’t pretend to have all the answers or try to pull a rabbit out of my hat and try to fool you with fancy language, niche indicators, or hypnotic analysis.

When I started investing more than 12 years ago, I felt the need to catch every move.

I felt the need to have a decisive opinion, at all times, about every market-related topic and how each variable influenced the direction of the market and by what magnitude.

I was obsessed with trying to time every high and low.

But it’s a futile endeavor and one that will only produce anxiety and disappointment.

And I don’t know about the rest of you, but I don’t optimize my efforts as an investor to be more anxious and more disappointed — so I had to shift that mentality, aiming to capture the most amount of returns with the least amount of effort.

That’s the purpose of these premium weekly reports, to publish the analysis that I’m using to make actual investment decisions myself, with the intent of maximizing returns.

So I’m going to make this report short and sweet, highlighting some of the key charts that I’m seeing across the market.

Let’s begin…