As Russell Turns Positive, We Timed Another Bottom...November 21 was the bottom for now... but we were right there at the center of it...
Dear Reader: Well, we can walk away again with the confidence knowing that our worldview of liquidity, momentum, policy, and insider buying has delivered again. On November 23, I wrote an email to my readers…
What happened… well, a few things. I based all my time on a simple pattern… Our Momentum reading hit ZERO buying pressure on November 20. Japan announced $117 billion in stimulus on November 21… Insider buying to selling ratio on a dollar-to-dollar basis pushed to the highest level since April… That’s the blue line (the five day moving average of buying to selling)…
And liquidity stabilized on the back of stimulus and the Fed’s repo injections and decision to end Quantitative Tightening. The Russell 2000 reading has now fully recovered from this bottom… Just a pure V-shaped recovery off the technical 100-day EMA and a collapse in selling pressure. And the S&P 500 reading has been positive now since… LAST WEDNESDAY…
It went fast this time… a selloff… a liquidity gap… a bottoming on buying pressure… a policy pivot… insider buying activity… and a sudden sweep of volume back in… Did you miss it? The good news is that we have done this a few times since COVID. My job is to help you get out of the way, identify contrarian buying opportunities when everyone else is panicking… and help guide readers back to positive momentum as it happens. For more on the pattern I’m always seeking - go here and read this free article… But before you do - please know I’m here to make you an offer… An opportunity to join us at our Black Friday price… That offer is after this article link…
Here’s the offer… What’s the price of stability? These markets are relentless, and it was the second time we’ve avoided significant selling… and targeted the short-term bottom with a combination of insider buying activity, a lack of buying pressure on our signal, and an uptick in insider buying… If you’re not a member, I’ll give you the Black Friday option again… just for you. I hope you’ll take us up on it… because the next downturn will be quick… and a lot of traders and investors will be blindsided. Stay positive, Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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