The stock market dipped 3% on Wednesday, and I know many investors are getting nervous.
Today I’m sharing an interview with Katie Stockton, which we recorded last Thursday, December 12. Katie is the founder and managing partner of Fairlead Strategies, an independent research firm and investment advisor. She also has her own ETF: the Fairlead Tactical Sector Fund (TACK).
Hearing from a technical analyst like Katie is particularly important when the leading macro analysts all seem to have wildly different outlooks, as they do now.
Here’s Katie:
Technical analysis in my opinion isn't really predictive per se, but it's putting more probabilities in your favor. It's helping you identify prevailing trends and stay on the right side of them and then it can help you manage risk within that context.
When we spoke last week Katie said the US markets might “tire out pretty soon.” Here she is on the European markets, and how they may have foreshadowed what’s in store for the US:
Global breadth has been pretty lousy. Not to say that we get a leading indication from European markets for the US market, but we feel that the corrections that have unfolded there, mostly pretty orderly corrections, are something that will ultimately characterize the S&P 500 as well. And just this week we decided that, and this is not for everyone, but in terms of relative positioning that those international markets are poised for relative versus US, and it's just one of those sorts of underlying indications that things might tire out pretty soon.
Now it’s looking like “soon” might have arrived before either of us expected.
In the interview we also discuss Katie’s outlook on bitcoin, the energy sector, and opportunities she sees in emerging markets.
A full transcript of our conversation is available here.
Thanks for reading and watching.
