My Allocation Strategy

Investors,

This is the most underrated stock market metric — the Value Line Arithmetic Index.

Because it’s designed to track the performance of the average stock in the United States, $VALUA gives an insight on how any random stock in the U.S. market is likely performing, an alternative to the cap-weighted structure of the S&P 500 or the price-weighted structure of the Dow Jones.

Zooming in on VALUA’s price structure since the 2022 lows, we see the following:

All I see is a potential head & shoulders continuation pattern, allowing the market to reset after a monumental and rapid expansion.

Does this right shoulder formation have to be perfectly equivalent to the left shoulder?

O course not — it’s an estimation of structure, focusing on the overall shape/trend.

But as we think about assessing future outcomes, this is my base case:

• Form this right shoulder, wherever the bottom might occur

• If price stays above the 61.8% fibonacci, then I expect a breakout to new highs

• If/when the “market” makes new ATHs, I’ll target the 161.8% fibonacci level

At current prices, the 161.8% target is approximately +20.3% away.

Maybe that takes 12-18 months to play out, but it’s certainly worth the wait.

So ask yourself… how are you positioned to sit through this current volatility and hopefully benefit from a “rising tide lifts all boats” environment?

My biggest suggestion for you is one thing: embrace nuance.

Then subscribe to Cubic Analytics, read all of my research, join the livestreams, access my entire portfolio, and know exactly what I’m buying/selling and when.

Let’s jump into the rest of this report…