Checking out Wealth E&P’s indicators and an exciting Artificial Intelligence Tool to manage portfolios
March 29, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we do our best to update you on the pulse of the markets each week.
Last week, the indices were all pretty choppy throughout the week, but on Friday the S&P and the DOW finished strong to capture gains for the week. The NASDAQ was affected by institutional sell-offs that were forced by some positions they had to get out of, and therefore the NASDAQ finished at a low, which has continued into Monday this week. Still, our indicators are relatively positive and optimistic, so we expect that trend to switch gears and head in the opposite direction.
Last week, I shared with you our City National Rochdale indicators, and today I want to share with you AlphaDroid, which is an artificial intelligence tool that helps us determine when to be in and out of the market:
In the upper left-hand corner is the StormGuard indicator, which everything feeds up to. When that score is above 0, it is time to be aggressive and push the gas pedal to the floor. When that score is below 0, it is time to get out of the market, get out of the way, and avoid the losses. The main three sources that feed up to that are the Market Momentum, Value Sentiment, and the StormGuard Standard indicator.
Also really exciting, in the bottom middle, you could see the SwanGuard indicator. This is an indicator of “black swan events”, which by their nature are supposed to be undetectable. But, this indicator has been very accurate; as you can see, in 2008 and 2020 it marked an event, as well as several events in between.
It is very exciting to have tools like this in our toolkit, and we are grateful to be able to use them for you. We hope we have a great week, and the markets turn positive. In the meantime, enjoy the ride!
If you have any questions for us about the financial markets, please feel free to reach out. Otherwise, stay tuned for our next Market Minute next week!
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