Market Risk Report as of August 8, 2022

Tom Veale
August 8, 2022

From Chief Investment Officer Tom Veale,

Is it “Too Much, Too Fast” or is it just a market recovery from an over-sold bottom? Here’s how the Signal 10 U.S. Sector ETF strategy looks as of Friday’s close:

Note the “Target %” column. Four components are now within 10% of their next inventory Sell targets. All but one component are above 80% of that goal. In the “Watch %” column note that every component is profitable from when they were added to this portfolio strategy in 2016.

The Market Risk Indicator suggests it might be a bit of both as it rises again this week. It’s now just slightly above its median value. All four components of the MRI rose slightly with the previous week’s trading. However, only Relative Valuation remains above one standard deviation and somewhat risky.

The members of our Legislative Branch of the government have passed the Inflation Reduction Act – and here I thought that everything they did was an act. A decade from now will anyone remember it?

Best regards,
Tom Veale

The MRI comes in “up” another point in risk at 28 this week. The MRI Oscillator shows a +7 indicating upward risk pressure on the components with all four rising this week.

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