Who knew bulls could sing?

Champagne? Not yet please. You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. [Image] Weekly Market Update Today is July 8, 2022 Hi there, Quick reminder: Going forward, you’ll be receiving the True Market Insider Weekly Market Update on Friday instead of Saturday. ************** Hi there and T.G.I.F. As I type these words, all three major market averages – the Dow Jones,the S&P 500 and the Nasdaq Composite –are enjoying their fifth straight day of gains. Said another way, all three have done nothing but gain in the month of July. The other two averages we track – the small cap Russell 2000 and S&P 600 - have gained during four of the past five trading sessions. That’s the kind of performance that makes you ask “are we near the bottom.” Of course the answer is: who knows? We’re certainly seeing signs that Demand is returning to the market. Our US Industry Bell Curve (aka the Sector Bell Curve) shows which market sectors are under short-term control of Demand (the bulls) and which are under the control of Supply (the bears). Blue boxes/sectors are in the hands (hooves?) of the bulls, while red boxes are in the hands (paws?) of the bears. Here’s what the Sector Bell Curve looks like today. As you can see, Demand controls a majority of the market right now. The real meaning of that image comes into focus when we compare that view of the market (what we call the “true market”) with the same view from two weeks prior. On June 23, Demand controlled just 13% of the market. So we’ve seen quite an upgrade in sector breadth over the final week of June and the first week of July. The Bell Curve isn’t the only indicator showing a resurgence in Demand. A bullish percent index (BPI) is a chart that shows the percentage of stocks in a particular universe currently on (point-and-figure) Buy signals on their own price charts. A universe could be: a sector, an index, even the market as a whole. We use BPI charts to see how broad-based any current strength (or weakness) in a given universe happens to be. Their ability to reveal this broadness is why we call them “breadth” indicators. When we look at the BPI charts for the major averages we find that all but one show Demand in control over the short term. (A BPI’s column indicates short-term control. When the chart is in a column of X’s Demand is in control. When it’s in a column of O’s Supply is in control.) Here are the five averages showing Demand in control. The S&P 500 The Nasdaq Composite The Russell 2000 The S&P 400 (Mid Caps) The S&P 600 (Small Caps) OK, so Demand is coming back, at least over the short term. Should we pop the champagne? Personally, I’d hold off. The siren song of a bullish relief rally can be potent. (Who knew bulls could sing?) For one thing, there’s more to a BPI chart than just the column. There’s also the signal – Buy or Sell – that the chart is on. We’ll forego the details for now, but take it from me that all five of the charts you just saw are on Sell signals. This indicates that Supply (again, Supply = bears) is in control over the intermediate to longer term. What’s more, notice how far down each of those charts has fallen. Without exception they are below the 30% level. That means they are in oversold territory. Until we see them reverse out of oversold, we’re not justified in calling a long-term bottom. Earlier I said that “all but one” of our major average BPIs were in X’s. The lone holdout happens to be our “granddaddy” of all indicators – the [New York Stock Exchange BPI](. As you can see, the chart is in O’s (Supply is in control over the short term). And the chart is on a Sell signal, so Supply is also in control over the longer-term as well. Plus, the chart is in oversold territory. The bottom line here is that, until we see some kind of follow through, something indicating that the current rally is more than a short-term bullish reversal within a long-term bearish trend, we should stick with our current bearish outlook and our current market playbook. Can you take short-term bullish positions here? Of course. Just understand that if you do, you’re playing the counter trend. If you’re aggressive getting in, be aggressive getting out as soon as you see a return to short-term bearishness. Remember, during a bear market, as much as 75% of stocks can experience losses, even significant losses. And this current bear market is no exception. Apart from commodity-based stocks, practically everything has sold off. One asset that’s been hit particularly hard is cryptocurrency. You’ve probably seen the headlines and heard the dance-on-the-grave declarations that Bitcoin is dead or Ethereum is dead etc. etc. That’s almost definitely a narrow, short-term view of what’s actually happening in the still-evolving world of crypto. Cryptocurrencies, and especially the blockchain technology that supports them, are the future. I’d bet my Morgan silver dollars on it. In fact, our resident crypto expert - Marco Wutzer – is so certain that cryptos are the wave of the future, he’s holding [a special one-time sit-down with Chris Rowe]( to bring True Market Insider readers up to speed on these ground-floor assets. This is a FREE event and I recommend you set aside a few minutes to hear what Marco’s latest research has to say. (During the event he’ll show why now is actually the best time to be buying crypto.) You can [save a free seat with Chris and Marco by clicking here](. Thanks for reading, and enjoy your weekend! And of course - enjoy these TMI articles from the current week.   This Week in True Market Insider July 5 - July 7, 2022 [Insiders Are Quietly Positioning Themselves Here]( As investors, we’re fortunate to live in an era where new opportunities are born every day. As we speak, Chris Rowe is on the other side of the continent hunting one of the biggest. [Here’s what Chris has his eye on now](.   [Avoid the Sh*tcoin Storm - Marco Wutzer]( Despite the recent sell off, cryptos such as Bitcoin are still the future and still worthy of your consideration. That’s most definitely NOT true of all crypto coins. [Read what world-renowned expert Marco Wutzer wants you to avoid](.   [Bear Market 2022 - Help Is On It's Way —Bill Spencer]( To hear the mainstream media tell it, you’d think bear markets were somehow evil. Far from it. In fact, they’re downright necessary and useful. [Here, “Big Bill” Spencer shows you why](.   Copyright © 2022 True Market Insiders, All rights reserved. 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