07-29-2020: Market Booms Higher... Why Doesn't Matter!

Year-to-Date Strategy Stats as of COB today:

+25.03% : Turner Quant Advantage

+ 6.03% : Tactical Growth

- 6.17% : Total Market

+ 0.29% : Diversified Income

+ 0.59% : Aggressive Growth


I find it more than a bit humorous to hear the pundits and talking heads try to explain why the market continues to move higher. Just once, I would like to hear someone say, "It doesn't matter why... What matters is the market is moving higher and if you're not taking advantage of this move, you are simply missing out!"


I can certainly 'guess' why the market is moving higher. I can postulate, like some are doing, that the market is completely uncorrelated to the actual economy and a "reset" is becoming more likely every day. I can use tired, worn out phrases like, "The market likes to climb a wall of worry."


And just like a stopped clock, the worry-warts will be right at some point. You could be so fearful of this market not realizing the economy is still mostly shut-down; that a trade/political war with China is well underway; that inflation is coming at us like a freight train due to all the so-call stimulus (free sugar) money being dumped into the economy; and let's not forget the most important presidential election in a lifetime is around the corner that will likely have more impact on the stock market than any other election in history... but... the market just keeps climbing higher.


It's actually kind of funny to see all the gnashing of teeth and sweat dripping from the bows of analysts who try to figure this market out. I have it all figured out and I am not trying to brag about it nor am I insinuating anything about how smart (or not) that I am. Here is what I know for an absolute fact... The current trend (which is quite bullish) in the market will continue moving higher exactly until... it doesn't. You knew that of course, didn't you?


Hopefully, you are not spending a lot (or any, for that matter) time trying to figure out why the stock market is trending higher, because to do so is (imho) simply a waste of time. Of course, if you don't have stops in place and if you don't know how or when to get into or out of the market, I can see why you might think it is important to understand why the market is trending higher. After all, you probably also worry about getting out of the market before the next big crash.


My clients and I are not worried about the market; at least I am not worried about the market and I hope my clients are not worried either. I have rules in place to move us to cash if/when the market rolls over. I have rules in place to move us into inverse ETFs in the next bear market if/when it occurs. In the meantime, we will keep growing our unrealized gains in this bull-trending market.


Almost all of our holdings moved higher today. How about that AMD... up +12.84% today! Glad we have it in Tactical Growth and Quant Advantage. Tonight, I'm raising stops in the TG model, per its rules.



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