SMO Exclusive: Market Strength Score 2024-02-27 (+40%, No New Shorts)
U.S. stock market environment changed after 2024-02-27 trading day to “No New Shorts” mode with a current +40% strength score. Classification: “Strengthening – Mid.” Previous change to Weakening: 2024-02-23.
LOGICAL QUESTION: Can this Market Strength Score be of value with such a quick change? (In this case, after 2 trading days. See previous change in this report.)
Why not?
The market is dynamic. There is a never-ending ebb and flow of strengthening and weakening and no one knows how long each phase will last. Since most stocks do what the market does (see this Market Conditions Matter post), why not track this?
KEYS – MARKET STRENGTH SCORE SUMMARY
🔹 Signal duration depends solely on objective market action measurement.
🔹 It conveys what “is” – not “why,” or for how long.
🔹 It is an objective, repeatable, and reliable tool to enforce discipline, prevent unforced errors, eliminate emotion and confusion, and make sound decisions in all market environments.
MORE DETAIL
This enforced discipline ensures new positions are opened only in the direction of market strengthening or weakening.
If strengthening, only new long positions can be opened.
If weakening, only new short positions can be opened.
Why? Because, to best ensure the first steps of a new position are positive, and because market direction is so influential on individual stocks, I only want to go in the same direction as the market.
This weakening does NOT mean I’d exit existing long positions. The critical question of “what is the market doing NOW?” and its answer only impact opening of new positions.
Existing open positions would be exited only if they exhibit behavior that negates the entry thesis. (Buy strength, sell weakness.)
There is never any telling how long the prevailing positive or negative Strength Score will last.
All it does is tell you what is. Never a why, or for how long.
That’s all it can do. But this is enough to
🔹 crush market confusion and emotion,
🔹 enforce discipline, and
🔹 prevent unforced errors.
From here, the rest is up to you.