A Bullish January and a Bearish February?

Written by Rob Goldman   

Our featured stock in last week's podcast of The Goldman Guide jumped 14% and hit a new high. We have a new feature this week along with the provision of important, overlooked data that explains near-term bullish market strength. Plus, we offer a tool to use as a hedge in case things turn ugly in February.

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The Goldman Guide

  • VOLUME 8
  • ISSUE 2
  • JANUARY 29, 2023

INSIDE OUR 10 MIN PODCAST:

  • The Stock Market Today
  • Near Term Market Projections
  • New Featured Stock

INDICES & CATALYSTS

KEY TAKEAWAYS

  • See why the market’s rise could continue and how to prepare for the big drop around the corner
  • Our featured stock last week was up 14.4% and this week’s podcast pick has similar traits
  • Learn the market signs the pros are missing so you can stay ahead of the game—even during earnings season

KEY FIGURES

Fwd P/E RSI
DJIA 18.3 57.7
S&P 500 18.3 63.2
NASDAQ 23.1 70.2
RUSS 2K 23.1 64.7

Making "Cents”
of Nonsense

In this week’s podcast, we try to make dollars and cents out of the nonsense that is the stock market. There are some wild things happening that appear to let the bulls rule the roost for a little while longer. And we outline them for you as some pros seem to have missed these key signs.

With that said, all good things must come to an end so we feel it prudent to give you a tip or two on how to prepare for what we believe is going to be a painful drop---albeit a tad later than originally anticipated. Still, it’s close than you might think.

Last edition’s featured stock Inspired Entertainment, Inc. (NASDAQ: INSE) reached a peak gain of 14.4% for the week and hit a new all-time high. We believe another 25-30% upside still exists so we remain big fans.

Afraid you missed the boat? We have a new featured stock in this week’s podcast that we believe could achieve a similar performance to INSE.

We continue with our earnings preview and identify the sector to avoid and the sector to monitor depending on your mood. The market is certainly behaving differently than anyone expected but there are hidden areas of strength.

Years ago, when the market had a strong January, it was led by dreams---small firms that had big aspirations and appeared set for great things ahead. Today, the performance is led by the absence of doomsday for stocks and the economy. In either case, a strong January often previewed an up year---the bigger the better. Hopefully, we all have put aside our rose-colored glasses, that see a bull market with legs, lest we take it on the chin, later.

The Stock Market Today

Notable Numbers

AAII Sentiment Survey (figures rounded)

Current Last Week Long Term Avg
Bullish 28% 31% 38%
Neutral 35% 36% 32%
Bearish 37% 33% 31%

ICI: Weekly U.S. Equity Fund Flows

  • 1/18/23: ($0.8B)
  • 1/11/23: ($1.0B)
  • 1/4/23: ($6.1B)
  • 12/28/22: ($5.4B)

Other Noteworthy Data:

  • Put/Call Ratio
  • 671 Stocks Reporting
  • New Featured Stock

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Originally launched in May 2010, and re-introduced in January 2023 after a hiatus from 2016-2022, The Goldman Guide is a free weekly audio podcast and newsletter produced by Goldman Small Cap Research and is written by Founder Rob Goldman with contributions from the GSCR contributor team. This non-sponsored investment newsletter seeks to provide investors with market, economic, political and equity-specific insights via an action-oriented, straight to the point approach. No companies mentioned in this newsletter are current sponsored research clients of the Company or its parent, With key exceptions such as Top 50 cryptocurrencies, some of which are noted as current holdings of Founder Goldman, all companies or investment ideas mentioned in this audio podcast and companion publication are publicly traded stocks listed either on the NYSE or the NASDAQ. Goldman Small Cap Research leadership bios and experience can be found on our website: www.goldmanresearch.com .

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