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VIG NewsletterJune 8 2024 Update

VIG NewsletterJune 8 2024 Update

Will Weak Market Breadth Kill The Market?

Recap

The major indices logged gains this week largely thanks to mega-cap stocks outperforming their smaller peers. Still, the broader market showed nice resilience to selling efforts. The equal-weighted S&P 500 declined 0.7% versus a 1.3% gain in the market-cap-weighted index. The S&P 500 and Nasdaq Composite each logged a fresh all-time high this week.

The Vig Co. portfolio was up and closed at a weekly high for the year.

Performance (Weekly/YTD)

VIG Co. +.66% / +14.75%

SPY +1.25% / +12.69%

VIG Co. Portfolio Holdings (Allocation).

KIAM V3. (100%)

Notes/Charts

I heard a bit of chatter this week about the weakness in overall market breadth - that the rally in 2024 is all Nivida, nothing else, and markets will correct soon. So I took a quick look at a few things this morning.

The Nasdaq Binati Index Weekly. This is an index that combines 3 different breadth indicators for the NASDAQ. Here you can see the rollover in 2022 and the subsequent decline in the market. And you can see that we are in a much stronger position currently - similar to 2020 and 2021 - above all the bands, averages and, a green cloud.

Next is the SP1500 weekly. A broader view than the SP500. You can see, again how it rolled over in 2022 and that we are in a much stronger position currently - closing at an all-time high. Nvidia makes up 5% of this index.

Here is one measure of market perception. BKLN - Bank Loans. This ETF is comprised of risky senior loans. Demand for these declines when the market perceives economic risks. You can see the rollover in 2022. You can see the run we are on now.

In summary, the bullish trend continues. We may see a correction soon, but it has not happened yet. KIAM V3 is slightly long heading into Monday.

Plan

Recently, I have been updating our Bitcoin symphony. And, I have a concept for a stable, high, dividend-producing symphony that we hope to get started on later this week. I will let you all know if anything looks good enough to invest in.

We will follow the math.

Note: Check out the updated App for Composer. (There is a link to it atop your Composer home page.) It works great.

Chris

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Market information from Bloomberg, ETRADE, Composer, Koyfin, and StockCharts.com.