Around the pandemic lows in 2020, I wrote that even though the virus will get worse, “it doesn’t mean the stock market has to go lower.” I remained bullish throughout the strong run but turned cautious in mid-December 2021 for two main reasons: The market technicals were breaking down and the Fed became increasingly hawkish. I’ve been defensive since then and maintained a high cash position for my clients.
In order for me to feel more confident about a sustained, new uptrend, and increase my exposure to equities, I need to see five things happen.
1. Improvement in Growth Stocks
The main factor I use to judge the health of the market is the price action of growth stocks. I screen the market every night looking for solid fundamental companies building strong technical bases. The more stocks I find, the more bullish I am on the markets, especially if these stocks come from a broad…
