04/16: Market & Portfolio Update: Markets Roll Over: Death Cross Holds, Portfolios Repositioned
Markets slide on Nvidia weakness and China trade war fears. Added new positions across both Long Term and Signals portfolios.
Near-Term Trend: Bearish — Key support levels to watch: 5,220, 5,130, 4950 and 4830.
We are now on the 3rd day after the S&P500 flashed the “death cross” and as history has shown, sentiment is typically weak for 15–20 days afterward. I don’t believe this time will be any different.
The market reacted poorly to Fed Chair Jerome Powell’s comments today where he indicated that tariffs could pose a challenge between controlling inflation and boosting growth. He essentially gave a “we will continue to wait and see” response, which dragged markets lower due to the uncertainty his comments created.
The good news from today is that the yield on the 10-year treasury continued to move lower following the massive rally we saw last week when Trump paused tariffs for 90 days in response to a weakening bond market.
The S&P500 gapped down at the open and closed at 5275.71. Both MACD and RSI are now showing a bearish reversal, meaning the market has lost the momentum since the big rally we saw on April 9th.
Portfolio Update
Both the Long Term and Signals Strategy have outperformed the S&P500 this week
Added 6 new positions today in total
Signals portfolio has stayed net short and up 0.42% (vs. S&P500 down 3.2% over same period)
Long Term Barbell Strategy
Goal: Outperform the S&P500 with a diverse portfolio of low-risk and high-risk stocks; long only (no shorts)
📈 Return since inception (March 7, 2025): -1.59% vs. -9.31% (S&P 500)
April 16th:
Added: UNH (United Health), SO (The Southern Company), SLV (Silver ETF)
Sold: BABA
Keep reading with a 7-day free trial
Subscribe to Delta Edge | Stock Signals to Beat the Market to keep reading this post and get 7 days of free access to the full post archives.