For a couple of weeks, the environment for growth stocks in the S&P 500 (SPY) was genuinely improving. This resulted in a more than 6% gain for our portfolio from mid-July to the beginning of this week. In a previous commentary, I speculated that either this truly was the beginning of a new regime or more of an earnings season phenomenon. Based on this week’s market action, it’s clear that it is not a new regime. Thus, we have de-risked our portfolio and are once again back in a defensive crouch. In this week’s commentary, I will update our market outlook. Read on below to find out more….(Please enjoy this updated version of my weekly commentary from the POWR Growth newsletter).
Market Commentary
As usual, let’s start with the one-month, hourly chart. which shows that the market’s upwards drift was rudely interrupted and we have basically given back this week and last week’s gains in a couple of sessions.