After chopping wood for two long years, we think it is time to sit back and enjoy the fire as it gets started into 2024. We’ll figure out the macro drivers later, but right now, the action we see since the Oct’23 lows is markedly different from the summer rally that failed in July. Being a “good” overbought, we should still see weakness, but it should be contained, and leadership should be bought. We also walk through the case for buying Disney here.
Monthly MOTR Checkup Video (MMC): “Put Down Your Axe and Enjoy the Fire.”
December 20th, 2023
Related Market Insights
Some of Our Latest Commentary
Weekly MOTR Report (WMR): “Nothing ‘Semi’ About This Leadership.”
Highlights Semiconductors tested key support on Friday; extreme oversold breadth within a strong uptrend creates favorable risk/reward. The MOTR Risk
Weekly Risk Gauge (WRG): “Buying Oversold Tech.”
Highlights The U.S. Risk Gauge remains just shy of full Risk On as leadership pulls back, with rotation into Banks,
Charting My Interruption (CMI): “Playing One Swing at a Time.”
Highlights Like in sports, navigating difficulty requires staying focused on what is happening now, not on what happened before, and
Weekly MOTR Report (WMR): “More Weakness for Leaders to Create Buy Setups.”
Highlights July gains in the S&P mask weakness across leading groups, including Semis, Metals, Hardware, Capital Goods, Chemicals, and Clean
Weekly Risk Gauge (WRG): “Financials Moves into the top 4.”
Highlights The Risk Gauge remains just shy of Risk On, leaving us bullish enough to not be bearish. Market leadership
Weekly MOTR Report (WMR): “Breadth Improves, Quality Set to Mean Revert.”
Highlights Although market breadth is indeed improving, it has not yet impacted the Risk Gauge, which remains in the top