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The market is sending clear warning signals that shouldn't be ignored. Technical analysis expert Vincent Randazzo reveals how deteriorating market breadth—a critical measure of market health—suggests we've entered a bear market that could persist longer than most anticipate.
Drawing on over two decades of experience in technical analysis, Randazzo explains that market breadth essentially represents liquidity: how much money is flowing into how many different companies. A healthy market shows broad participation across companies of all sizes, while an unhealthy one features concentration in fewer names. At February's market peak, only 53% of stocks in the Russell 3000 were trading above their 200-day moving averages despite major indices hitting all-time highs—a classic divergence pattern that has preceded major market tops throughout history.
Small cap underperformance has been particularly telling, with the Russell 2000 effectively experiencing a "lost half-decade" already when accounting for inflation. This divergence between small caps and large caps represents one of the most significant warning signs in current market conditions and could be foreshadowing a potential "lost decade" for equities similar to 2000-2010.
For investors accustomed to the "buy and hold" approach that has dominated the last 15 years, this environment demands a tactical, risk-aware strategy. The value of avoiding major drawdowns while still capturing upside becomes paramount for effective long-term compounding. Diversification needs to extend beyond asset classes to include different strategies with varying signals and time horizons.
Whether you're managing your own investments or working with an advisor, understanding these technical signals could make the difference between protecting your capital and suffering significant losses as this bear market potentially unfolds. Visit viewright.ai to learn more about navigating these challenging market conditions with discipline and systematic risk management.
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Discount Code: LEVEL8LAG10
– Offers 10% off on all products
– No expiry, unlimited usage
– Not stackable with other discounts
Sign up to The Lead-Lag Report on Substack and get 30% off the annual subscription today by visiting http://theleadlag.report/leadlaglive.
Foodies unite…with HowUdish!
It’s social media with a secret sauce: FOOD! The world’s first network for food enthusiasts. HowUdish connects foodies across the world!
Share kitchen tips and recipe hacks. Discover hidden gem food joints and street food. Find foodies like you, connect, chat and organize meet-ups!
HowUdish makes it simple to connect through food anywhere in the world.
So, how do YOU dish? Download HowUdish on the Apple App Store today: Support the show
4.6
8888 ratings
The market is sending clear warning signals that shouldn't be ignored. Technical analysis expert Vincent Randazzo reveals how deteriorating market breadth—a critical measure of market health—suggests we've entered a bear market that could persist longer than most anticipate.
Drawing on over two decades of experience in technical analysis, Randazzo explains that market breadth essentially represents liquidity: how much money is flowing into how many different companies. A healthy market shows broad participation across companies of all sizes, while an unhealthy one features concentration in fewer names. At February's market peak, only 53% of stocks in the Russell 3000 were trading above their 200-day moving averages despite major indices hitting all-time highs—a classic divergence pattern that has preceded major market tops throughout history.
Small cap underperformance has been particularly telling, with the Russell 2000 effectively experiencing a "lost half-decade" already when accounting for inflation. This divergence between small caps and large caps represents one of the most significant warning signs in current market conditions and could be foreshadowing a potential "lost decade" for equities similar to 2000-2010.
For investors accustomed to the "buy and hold" approach that has dominated the last 15 years, this environment demands a tactical, risk-aware strategy. The value of avoiding major drawdowns while still capturing upside becomes paramount for effective long-term compounding. Diversification needs to extend beyond asset classes to include different strategies with varying signals and time horizons.
Whether you're managing your own investments or working with an advisor, understanding these technical signals could make the difference between protecting your capital and suffering significant losses as this bear market potentially unfolds. Visit viewright.ai to learn more about navigating these challenging market conditions with discipline and systematic risk management.
Whether you're heading out for a weekend getaway or embarking on a global adventure, LEVEL8's sleek, durable luggage is designed to keep up.
Visit www.level8cases.com and use code LEVEL8LAG10 to get 10% off your next purchase.
Discount Code: LEVEL8LAG10
– Offers 10% off on all products
– No expiry, unlimited usage
– Not stackable with other discounts
Sign up to The Lead-Lag Report on Substack and get 30% off the annual subscription today by visiting http://theleadlag.report/leadlaglive.
Foodies unite…with HowUdish!
It’s social media with a secret sauce: FOOD! The world’s first network for food enthusiasts. HowUdish connects foodies across the world!
Share kitchen tips and recipe hacks. Discover hidden gem food joints and street food. Find foodies like you, connect, chat and organize meet-ups!
HowUdish makes it simple to connect through food anywhere in the world.
So, how do YOU dish? Download HowUdish on the Apple App Store today: Support the show
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