It may be time to take the foot off the gas because there could be a turn ahead, so let’s keep both eyes on the road.  I believe the leaders stumbled a bit last week, so now we see if they can gain a stronger footing or they bring the rest of the market lower.  I feel like the market may have temporally lost its risk appetite, so maybe it is time to clear the deck and sit on the sidelines while the dust settles.  I worked too hard to get the gains we have in LIONX this year and I will not sit on my hands and let the market take our gains away, so I harvested some profits last week.  I believe that it is hard to go wrong taking profits!  By the Grace of God, I try to position LIONX according to the risk I see and the return I expect then I act accordingly seeking to maximize our gains and seeking to avoid life-changing losses.  I wish you the best of returns! Grace & Peace to everyone!      

The leading stocks are still leading the indexes higher.  I am satisfied with the current positions in LIONX.  I do not try to predict or forecast returns.  I try to manage the risk daily and let the market determine the returns.  The cloud-based stocks seem to be favored among growth managers and that is where I am finding stocks to add to the LIONX portfolio.  If these stocks do not perform as expected, I will not hesitate to sell, or hedge as needed, seeking to avoid life-changing losses.  Grace & Peace to everyone and fear not!      

I believe the market may penetrate overhead resistance and head higher this week.  If that happens, I plan to get more invested.  Growth stock leaders still appear to be in charge, and I expect them to continue their advance at least until we get early signs of an economic recovery.  Until then, I expect the “work from home-cloud based” software, medical and chip stocks to remain under accumulation by the large institutions.  I try to follow the “big money”.  If I am wrong, I will do my best to minimize the draw-down by going back to Cash if needed.  Do not forget to send me your email to sign up for the “Chat with Dex” webinar this Tuesday.  May you receive God’s unconditional Love and live to share it!  

I believe we will break out of this trading range and head higher into November.  The Fed currently appears to have our back.  If things go as planned, I plan to increase exposure this week.  If I am wrong, I will do my best to minimize the draw-down risk by going back to Cash if needed.  Don’t forget to sign up for the “Chat with Dex” webinar.  Grace and Peace to everyone!  Peace is a Fruit of the Spirit, so please do not let anyone steal the Peace that Jesus died to give you.  

Price is the final judge and it is telling me that the leaders and indexes are stretched and may be due for some backing and filling. LIONX is in cash but my guns are locked and loaded looking for lower risk buy points.  I am still optimistic that the Fed will do the right thing and not undermine Trump’s chances for reelection.  However, the trend of the Fed’s declining balance sheet in the last four weeks says otherwise.  On the other hand, QE is still in the system and liquidity is strong.  Fear not because God is still in control.  I pray for God’s Grace and Peace to be with everyone reading or hearing this message.       

Yes, I am concerned with the declining Fed’s balance sheet, but I follow the leaders.  I try to own leading stocks by letting them pull me in and then push me out.  I believe that some of the stocks that led the rally (leaders) off the market bottom on 3/23/20 may be running out of gas and they may take a breather as laggard stocks play catch up.  If these leaders back-and-fill a while without serious price corrections, they could build secondary bases to buy from later.  However, if the indexes can’t get above near-term resistance then we could see the indexes roll over and the leaders would likely come under heavier selling pressure more so than the indexes.  I truly believe there is a higher probability that the leaders could resume their advance into the November election and Trump will be reelected.  Only God knows the future and I have faith that He works all things for our good.     

 I believe this is a stock pickers market and not a buy the index market where a rising QE tide lifts all boats.  The leaders are still leading, but some have come in hard recently and my eyes are on the exits should the selling continue.  The big cap index is about 10.4% below its high.  The small-cap index is about 18.8% off its high while the tech index is only about 3.5% off its all-time high.  Cloud, software, medical, and internet tech stocks have been the leaders and we should soon find out if they will maintain their leadership.  If the techs breakdown, then I believe we could be in for some serious economic trouble.  I believe a steep stock market decline ahead of the election would not bode well for Trump’s reelection.  I believe God gives favor to whom He decides will be President and God gives wisdom to anyone who asks.  May God’s grace, mercy, and wisdom be with you always!   

 The election is on November 3rd and I do not believe the Fed will do anything to hurt President Trump’s chances for reelection.  However, if the Fed continues to contract its balance sheet at the current rate, I would not be surprised to see the stock market take a breather, but I do not expect a retest of the March lows.  Leading stocks in the cloud, software and medical space continues to charge higher but if they start to show a few “kinks in the armor” I will not hesitate to do what is necessary to get out of harm’s way.  There is ample negative news on social media and TV but fear not.  God is still on the throne and He gives wisdom freely to those who ask.  Trust God and He will never leave you or forsake you.     

I expect the laggard value stocks to take a back seat to the leading growth stocks. I believe the leaders were not being sold/distributed last week but rather buyers slowed their purchases. This appears to be a healthy dose of growth stock consolidation, in my opinion. However, 5% daily declines must be taken seriously. I like to buy the “tennis ball” stocks that bounce higher and try to avoid the “egg stocks” that just sit there looking broken. I believe the Fed has our back and that gives me the conviction to be 90% invested. I also believe that God has His hand on America, and He holds every President in the palm of His hand. Pray with me for the men and women who work hard to protect our freedoms. Thank You for Your Trust and Business and may God Bless You!

The laggard cyclical stocks have been leading the market higher.  I expect growth stocks to rest a while then pick up steam and start leading again.  If I am wrong, I will do my best to get right and avoid life-changing losses.  I believe the Fed “has our back” and I do not see that changing until at least after the November election.  Please keep praying with me for Godly Wisdom and Discernment for our President.  I believe that God has His hand on America because we still honor Him. Thank You for Your Trust and Business and I pray that everyone hearing or reading this will be Abundantly Blessed! I pray that you have a blessed and productive day!