Weekly ChartStorm: (new) Top Chart
Here's my pick for Best Chart of the pack this week...
Hi there, welcome to The Weekly ChartStorm!
I’m trying out a new format for free subscribers this week — Since taking the Weekly ChartStorm paid in 2023 it’s been a little bit of a challenge figuring out what to send for free subscribers… You want to give something of value, but you don’t want to give away the whole thing and do wrong by paid subscribers. You want to give a sense of what was covered so people know what’s in it, and you want to get people excited about signing up to the full service, but you don’t want to to be spammy or annoying…
So here’s my attempt at covering this brief — what I am going to share is:
My pick of Best Chart from the pack (so that I can give you something of real interest and value);
Complete Listing of what exactly was covered (so you can see if there’s anything in there that you’d like to know more about); and
Link to the latest pack and instructions to get access (so you can easily gain extra benefits and insights to help you get ahead).
Hopefully you find this note interesting by itself but also useful as a means of better understanding what’s on offer for paid subscribers of this service.
Weekly ChartStorm — Top Chart Pick
Perspective Check: Here’s how the current drawdown in the S&P500 is tracking vs history — it’s basically just noise at this stage…
But the reason I picked this chart is it serves as a timely risk-management reminder:
5-10% corrections are fairly common,
10-20% corrections are not uncommon,
and 20-30%+ downsides happen about at least once a decade (so if you invest for long enough, you *definitely will* experience at least one major downturn)
It’s a reminder to be prepared, either through process (e.g. having a good objective and reliable approach to lighten exposure to downside in bear markets, and paying attention to asset allocation and smart diversification) and/or psychology (having the right mindset to stay the course, having the resilience to stick with the plan and trust the process but also mental flexibility to change when needed).
We might disagree on the risk outlook or the prospects of when the next big downturn may come, but I think most of us can probably agree on the importance of thinking and preparing for it before hand (because figuring out the right mindset or movements during the downturn may well be too late).
Source: Topdown Charts
Latest Weekly ChartStorm Contents
Here’s the charts and topics I covered in the latest edition of the Weekly S&P500 ChartStorm — at a high level the themes were; the short-term market outlook, the medium/longer-term risk backdrop, and global vs US stocks:
Technical Check: key levels, moving averages, market breadth.
Perspective Check: max-drawdown (the chart above).
Rebound Prospects (1): tracking extremes in sentiment.
Rebound Prospects (2): tracking extremes in positioning.
Valuations: weighing up the lack of reset in valuation indicators.
Portfolio Allocations: a longer-term/slower-moving measure of sentiment.
Positioning vs Sentiment: contrasting picture, but similar direction of travel.
The impact of portfolio allocations on valuation levels.
Global vs US Rotation: the technicals are turning on this one.
Global ex-US Equity technicals (strong absolute performance).
The Market Themes section (bonus chart(s) and mini-blog focus piece) looked at progress and prospects for global vs US equities:
BONUS CHART 1: global vs US performance and the US Dollar
BONUS CHART 2: global vs US valuation indicators
There’s been some interesting discussions in the Comment Section too, so be sure to check that out as well.
Access the Latest Report
If you are already a Paid Subscriber, please click through to access the latest edition here:
NOTE: If you are not yet a paid subscriber, I would like to present you with two options..
Take a Free Trial (if you are not familiar with me or my work it might pay to take a free trial so that you have the option to cancel without being charged if it doesn’t help you or provide useful insights)
Subscribe (if you have been following for a while, maybe it’s time to just go ahead and upgrade so you can benefit from my hard work to help you spot opportunities, avoid emerging risks, build your knowledge base, and gain perspective to become a better investor)
Learn More about me & The Weekly ChartStorm
If you need a bit more info first, I would strongly encourage you to review the following resources, especially paid subscriber reviews:
Check out what our paid subscribers say [Reviews Section]
Study the “Getting Started” section for more detail on the service
Learn more about the ChartStorm and who’s behind it [About Section]
Thanks for reading this far — hopefully I hit the brief I outlined at the start in terms of providing some value + clarity on what’s in the latest report and how to gain access, but feedback is always welcome.
Best regards,
Callum
—
Callum Thomas
Founder & Editor of The Weekly ChartStorm
and Head of Research at Topdown Charts
Twitter/X: https://twitter.com/Callum_Thomas
LinkedIn: https://www.linkedin.com/in/callum-thomas-4990063/
NEW: Other services by Topdown Charts
Monthly Gold Market Pack —[Gold charts]
Australian Market Valuation Book —[Aussie markets]
Topdown Charts Professional —[institutional service]
Topdown Charts Entry-Level — [TD entry-level service]