Interim Update – 9/27/2022

Good Morning:

• The Founder’s Group notified subscribers yesterday afternoon that we were covering our latest short position at 3668.75.
• We had shorted the morning drive at 3717.25.
• From a trading perspective, shorting at the 5-day line has been successful. But the Navigator Algo is painting preliminary buy signals on the daily chart.
• The alerts tell us to pay attention – but not everything is in place for a solid buy signal yet, and the signal may not complete.
• The signals are enough to keep us neutral while we see what develops.
• If anything, one still has to wonder why the S&P 500 is not in worse shape with a complete meltdown in 10-year treasuries and junk bonds.
• The Founder’s Group believes the sentiment is too negative here and needs to bleed off before we get the next down leg.
• Also, with the third calendar quarter ending this Friday, there is always some nonsensical distortion around money manager duck, cover, and window dressing.
• Our aggressive accounts took the long side for a bounce on the cover signal but maintain a veyr tight trailing stop.
• But the trend remains down, so manage long positions carefully. For those of you still holding onto hope – any meaningful rally is another chance to liquidate longs and cull your portfolio.

A.F. Thornton