Big Picture Crystalizing…

One person who I track is Jeffrey Gundlach. Back after the last FOMC meeting on 9/20/23 he was interviewed on CNBC for his general economic view and how one may put together a big picture investment trade. His answer was watch the markets closely for the next few weeks and initiate a four pronged approach; ie. get long bonds, short term money instruments, stocks and commodities in equal amounts.

In review, an index of these four investments was created with the base number set on 9/20 values set at 100.00. Then in my view athe trade was technically triggered on 9/27 @ 97.39. It then made its bottom a week ago early in the day at 94.77. Today at noon it was at 96.82. Here is the chart.

While there will be a fair amount of volatility going forward, we next week will be in a seasonal bottom area for this type of trade. When you put it all together, it seems we should be ready to move higher on the total economy.

One extension of the developing scene..

The small cap Russell stocks have been where the bear trades have been hiding. They are going to have to cover as the overall scene changes. Here is the RUT/NDX relationship chart.