The WallStreetWindow Podcast

As I have been pointing out for several weeks now, stock market internals are weakening and continued to do so last week. This is why it is becoming harder to trade most stocks and why so many fad stocks plays that make up the Robinhood top 100 most owned list and the holdings of the BUZZ and ARKK ETF's are no longer working well, even though the S&P 500 made a new high two weeks ago. Leadership is now very narrow in this market and only a few sectors made a new high last week.

However, the weakness in the market internals doesn't mean the stock market is going to crash, even if it is likely to continue for sometime. I show why in this update.

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A financial market can have one of three trends to it - up, down, or sideways. If you look at gold it really has been in a sideways trend since last August. The stock market appears to be headed for something similar as we are already seeing the internals of the stock market droop, and many fad stocks inside the ARK ETF and the top 100 Robinhood list go into nosedives.

How do you navigate a sideways market when it can become so easy to churn your money over in it? One thing to do is to trade less actually, because churning markets are actually more difficult to make money in. Buying momentum highs, which works in strong uptrending markets, no longer works as well in sideways markets.

I use a money management strategy that helps me deal with sideways trending markets and start to talk about it in this video.

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In this stock market update I show you all of the stocks I am short selling right now and explain why. I do not think the stock market is about to crash and am not trying to bet on some massive decline. I am still long more stocks than I am short, however I am now operating more like a hedge fund than a momentum Robinhood trader, meaning that I am both long and short stocks. The original hedge funds of the 1940's did that to limit their risk and also to make their returns more dependent on their stock picking abilities than the direction of the overall stock market. The best way to make money in the markets is to be long stocks inside sectors outperforming the market. However, betting against stocks lagging the market is a way to limit risk in sideways to down markets.

The Cathie Wood ETF ARKK is made up of many stocks that are highly valued and are now lagging the market. She got a lot of media attention last year as her fund went up and does a great job of hyping people up about new technologies and things like crypto currencies, but in the long-run earnings and valuations - the price you pay when you buy a stock - do matter.

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In this weekend stock market update, I take a look at the big picture of the technical analysis charts and what they suggest we can expect now for the price of gold and the S&P 500. A lot of meaning has been given to the recent dip in gold below $1800, but the overall trend is the same as it has been for gold for over a year. At the same time, the S&P 500 momentum has slowed down in recent weeks and many stocks are now lagging the market. But, does this really mean the stock market is going to decline or does it set the stage for something different now to happen that could surprise both bears and bulls?

In this stock market trading update I talk about several key topics. First, the big momentum stock play that is getting people's attention today is Robinhood (HOOD), which made a new high this morning to bring in momentum buyers.

Secondly, I talk about the price of gold and monthly gold seasonal trends that go back for decades. They suggest that now is the time to invest in gold.

Last month we saw the stock market dip in the first half of the month and then rebound hard in the second half into earnings reports by FB, AMZN, GOOG, MSFT, and AAPL. Gold also turned up last week to hit $1825.

What can expect from the price of gold and the stock market trends in August? I cover that in this video update and talk about the news that is having an impact, including rising covid cases (for now), GDP growth rates, and the Federal Reserve's new definition of "transitory inflation."

This morning gold traded above $1825 after Federal Reserve Chairman Jerome Powell redefined the meaning of transitory inflation at yesterday's press conference he held following the FOMC statement. This is a key moment for the price of gold, mining stocks, and even the price of silver as all three fell in June and then went through a price stabilization phase. That phase appears to be ending today to mark the start of a new metals rally.

There is no mention of this in Robinhood emails, CNBC, and no mining stocks are yet on the Robinhood top 100 most owned list. This is a trend the masses are totally asleep on, despite the reality of growing inflation in the economy in their daily lives in front of their face, so mesmerized are they by crypto collectible coins and fad stock plays.

The proof of there lack of interest is also this video, which will be lucky to get more than a few hundred views, while crypto gurus get tens of thousands.

I'm talking fast in this trading video, because I'm covering several topics all at once for you in this stock market news update. This is a lot of info without the fat. The "FANG" stocks are leading the market this week as expected. The GDX/GLD ratio is positive, which is a good sign for the price of gold going forward even if it is still in a stabilization phase. I talk about what I'm going to be watching in the markets as this week plays out and a small currency trade I did today.

Last week internals in the stock market weakened. That was a harbinger of a stock dump Monday, but then the market rallied. However, many popular stocks that make up the Robinhood top 100 list and fad ETF's ARKK, BUZZ, and crypto coins Bitcoin badly lagged the market averages. This week's rally has been fueled by several key big cap stocks set to report earnings next week. This has been the biggest trend shift in the markets this week and will be critical to keep your eye on next week too. Meanwhile, gold is still in a stabilization pattern around $1800 much like it traded last March.

In this video update I wanted to give a real talk about the real role of Bitcoin and cryptocurrencies in an investment account. How do they do at times of stock market volatility? Are they safe havens or instruments of simple speculation? If they are only the latter, which I believe they are, then they only work for people when they time things right from a pure trading perspective.

I also talk about gold, silver, and precious metals in this video.

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