SMO Exclusive: Current Market Status Report 2023-10-27 -98% Strength Score Zone 6
Are you confused about the market? Here is additional 10/27/23 clarity to go with the Industry Strength Report.
Current market status
🔹 Strength Score: -98% (on a scale of -100% to 100%)
🔹 Zone: 6, Weakening - Late
🔹 Action(s): No new longs
Why do you care?
These reports can help you benefit from CONDITIONS FIRST, VEHICLES SECOND.
Entering the Baja 1000 off-road race with your Formula One race car? Good luck even making it to the start line.
Going short a bull market? Long a bear? Again, good luck with that.
In racing and the market, conditions matter. Most stocks do what the market does, both up and down – see Market Conditions Matter for more.
While some can successfully do so, most of us should not go long when the market is falling or go short when the market is rising.
Easier said than done – to help, I created the
- Strength Score,
- Sector Risk Gauge, and
- Industry Strength
measurements to objectively understand current conditions in the
A) Market,
B) Sectors,
C) Industries, and
D) Sub-industries.
Once you understand current CONDITIONS at these four levels, then you can focus on selecting appropriate VEHICLES, aka
E) individual stocks to best profit given these conditions.
The goal?
To systematize actions and remove emotion-driven decision-making in all market environments.
Why?
The higher your emotions the lower your chances of optimal outcomes.
What does this mean at a practical level?
You can control process, not outcomes. Analogy: training like an Olympian won’t guarantee you Michael Phelps-like success, but not training like an Olympian will guarantee you will not become an Olympian. Having a process to eliminate emotions won’t guarantee you a green P&L, but it is highly likely not having such a process will award you a red P&L in the long run.
To increase your chances for attractive outcomes – higher returns faster – use an objective, logical, repeatable process that explicitly acknowledges how the market works.
CONDITIONS FIRST, VEHICLES SECOND.