Bullish Investors - Be Afraid.

Participation dries up. You are receiving this email because you signed up to receive emails from True Market Insiders. [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 April 28, 2023 Dear Reader, Hello again and Happy Friday! In last week’s Update I wrote, “we seem to be stuck with a stock market that likes to talk in riddles." "Or talk out both sides of its mouth.” And we saw an example of the market’s manic-depressive behavior. We said… Bill Spencer Editor-In-Chief True Market Insiders “Right now four of the five major averages are posting losses for the week." “That feels bearish, no?" “But look at this…" “The small-cap Russell 2000 is the one major average that’s gained this week." “That feels bullish, yes?” If that type of market uncertainty and indecision frustrates you… Then get ready to pull out your hair. Because this week we pretty much have the opposite condition. (Because of course we do.) As of 1PM ET today, three of the five major averages are posting gains for the week. And the worst-performer is (you guessed it) the small-cap Russell 2000. As small-cap behavior tends to lead the behavior of large-cap stocks, weakness here is always concerning, if you’re a bull or are long stocks. An even greater concern for bulls (and a talking point for bears) is that even when the market rallies, there tends to be a lack of broad participation. In fact, right now a handful of giant stocks, thanks to their over- weighting in the major averages, are pulling the market higher. And while a great many smaller stocks might be struggling, their behavior fails to move the needle on the S&P 500. That’s because smaller-cap stocks have a smaller effect on that cap-weighted index. We saw this exact phenomenon back in the fall of 2021, when the FAANG stocks pulled the market to new high after new high while under the surface broad-based weakness had taken hold. The mainstream media mainly follow only the “external market,” aka the Dow and the S&P. By the time those averages have fallen enough to get their attention, the true market has been falling for weeks or even months. Here’s another sign of weakness. This is the most recent view of the US Industry Bell Curve, one of the premium tools that comes bundled with Sector Prophets Pro, our research and data platform. Strong sectors are colored blue, weak are colored red. You can see that the majority of sectors – 26 of them – are colored red. Only 19 are blue. So the bears are in control of much of the market.   SEC Rule 10b5-1 [How this Wall Street loophole allows ANYONE]( to tap into $1.4 million in daily profits… And, how you can see 17 TIMES your money - or more - in as little as five days. Starting with just $20. [You don’t want to miss this.](   This past Tuesday, Chris Rowe penned a highly relevant article in True Market Insider that spoke to the weakening condition of the stock market ([“When Fox & CNN’s Stars Fall, So Do These Stocks”](. Chris’ stance leans bearish. He writes… “Pre-election years are typically, by far, the strongest of the 4-year cycle. Since 1950, the gains from the mid-term low to the pre-election high are on average about 49%." “This from an index that returns about 7%-8% annualized over most decade periods." “But we didn’t see much strength off of the October lows this time, did we?" “April is supposed to be a gangbusters month for stocks. We just aren’t seeing it – and that’s not a sign of strength.” This does not mean that a new, longer-term bull market hasn’t begun. I’m willing to bet that a year from now we’ll look back on this period and, with 20/20 hindsight, say that a new bull market was in fact underway. There are bullish signs we could point to. For one, right now our #1 indicator – the New York Stock Exchange Bullish Percent Index (NYSE BPI) is in a column of X’s. We interpret that to mean the stock market is strong over the short term. It would be great if the market began to show a clearer trend – either up or down. Our job as investors would be easier if all the signs pointed in one direction. But that’s the market we’ve been gifted with so far in 2023. As always, we’ll play the hand we’re dealt. Seeing the market clearly, and focusing on sectors lets us stack the deck in our favor. That’s because the guys on the other side of our trades won’t be seeing things as clearly. So we’ll be more likely to win.   The truest action an investor can take is to spend money on a position. And the more they spend, the righter they think they are. Costas Bocelli’s “Dark Money” scanner is trained to spot unusual (or unusually large) bets being placed in the options market. The indicator then alerts Costas so he can tell his readers about it. Last week the scanner spotted a whale who was spending $1.3 million to play a California-based A.I. stock. (Another recent opportunity on Costas’ radar outperformed the entire S&P by a factor of 9 to 1.) I recommend you [explore putting Costas’ scanner to work in your own trading account](.   Thanks for reading, and have a great weekend. Bill Spencer Editor-in-Chief, True Market Insiders [This “A.I. Cop” Stock Could Pop 76%]( [Today’s Column Has Buffett’s Blessing]( [Bank Crisis - A Gift that Keeps on Giving](   [True Market Insiders' Portfolio Track Record] You can [change your preferences here]( DISCLAIMER ©2023 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. 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