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Looks Like Exhaustion – January 15th, 2021

The markets made their high Monday morning and traded lower all week. This is a difficult week to analyze where the markets want to go. Why? Because my strength indicators, which I trust and invest based on, are breaking down hard. Meanwhile, the Advance/Decline, net new highs, and other metrics are strong. So strong, they look like no impending danger.

Last week, we had great price action across the globe. I expected that to continue. When the market doesn’t do what we expect, we need to watch for winds of change. This week, that is particularly true. The newsletter doesn’t suggest new positions this week. Even areas I want to see perform well, I will probably avoid, because the market has some very precarious signals underneath. I don’t need to be jumping every week, when the potential
for a rip lower is increasing. More outside bars and inside bars – mean indecision.

What I do know, is in the background, a large number of my charts went from positive to negative this week while the $SPX only dropped 1.5%. I trust my strength indexes a lot because I created them to protect my capital. I want out before or near the top of the market. I invest when I have tailwinds and right now, we have swirling winds at best with numerous charts extremely stretched.

A phrase from Dan Fitzpatrick – “Expect the expected.” I expected the markets to continue to push higher on Biden’s agenda. If it doesn’t play out, I’ll check my work and be careful. That is where I am at this week.

The newsletter below is focused on showing the significant extremes of the market, complete with negative divergence and a sell signal on the Nasdaq 100. It also shows the euphoria that hit the Nasdaq Composite to start the year. This isn’t a subtle ‘one-off’ clue. This is an absolute bomb, suggesting extreme caution. All of a sudden, from out of nowhere, the Nasdaq volume is crazy, whereas the Nasdaq 100 is fine.

Click below to view the whole pdf document….


Quarterly Newsletter: Ready for retirement? New year, new normal: what’s the best strategy?

As the new year begins, it’s difficult to know what kind of financial and investing challenges await us. All indications are that we will continue to live with the effects of the pandemic for some time, but those effects may not be straightforward. Last year, the markets showed themselves to be surprisingly resilient while the “real” economy and job market faced substantial

The way forward? Build financial resilience into your household balance sheet while maintaining your commitment to your long-term investing goals.


Happy Holidays and Merry Christmas from the ClearWater Private Wealth

Happy Holidays and Merry Christmas from the ClearWater Private Wealth Team! Although the holidays will look very different for everyone this year, we still have many things to be grateful for. Keeping this in mind, 2020 has been an exceptionally hard year for many people and unfortunately local charities have not been exempt from this hardship. This year, we have made a donation on behalf of our clients to a couple of charities that I have worked with over the years.

2020 Year End Tax Planning

2020 will no doubt go down as one of the most monumentally disruptive and headline-intense years on record. Nonetheless, even a global pandemic is no excuse not to get your planning ducks in a row and consider ways to economize on taxes and plan your wealth strategies for the 2020 year end. As we enter the final weeks of 2020, we’ve listed a few helpful strategies that may be useful across..

Quarterly Newsletter: Ready for retirement? How to find out before you do it

When the time comes, will you be ready? The transition to retirement can be a real challenge for many of us. In fact, a 2019 poll by a major Canadian fi nancial institution found that more than a quarter (27 percent) of retired Canadians regret retiring and an almost equal number (23 percent) have tried re-entering the labour market.

Click below to read the full version of our newsletter.


Changing Employment? Pension Options Explained.

Accepting a severance package or forced retirement from work is a significant milestone. With the world an even more uncertain place in 2020, there is a lot to learn, and learn quickly.

It’s Up For Debate- October 23rd, 2020

Another meager week. Feels like we are on the road to nowhere. Barely a ripple on the Nasdaq between the 5 closes. Flat water. The Advance/decline data are positive for the week. My Schnell Strength Index fell back below 75 adding caution. I have one chart that keeps track of wide differences in my momentum data. It is giving a signal like the March lows! So be open to the upside. With
the second COVID wave accelerating, is the market going to price in a second shutdown or just a massive prevention plan of masks and distancing? It is up for debate as to which way we break.

One week was a pause, but I certainly didn’t want to see more weakness this week. It wasn’t much, and we didn’t have big down days (Monday was 1%). But you can’t go up without momentum either. Big tech reports this week. Thursday night is the elephant on the agenda with AAPL, AMZN, GOOGL, and FB. MSFT is Tuesday night.

Financials were up a little, but yields were up big. Banks and brokers are
both trying to work higher. I spent a little time on yields on the video, but
they were up bigly.

Industrials pulled back, and the rails broke the uptrend. The last three of
those rail chart trend breaks coincided with multi month weakness, so I’m
choking on that chart. Oil names rallied 3% even though crude moved down on the week. As we hunt for the secondary low in oil stocks, I’ve broken that strategy out in detail this week. It’s up for debate if they are ready to go.

Summary: With the pullback on my strength indicators, it adds caution. The dropping US dollar may continue to help commodities. I was nice to see $USD continue lower. Another down week on the dollar could really give commodities a lift as charts like Copper, Steel, EEM, URA, XOP are set up. Not so much in gold, but in the other names. The equity activity this week was as muted as at this ferry ramp. Nothing exciting on a dead end road.

Let’s jump into the charts. Click below to view the full PDF.


ClearWater Market Commentary as of October 16th, 2020

The Bank of Canada has signaled an improvement in the economic environment by reducing the emergency measures it put in place last spring to stabilize..

Pop the Clutch- October 16th, 2020

What a weak week. After a nice roaring rally last week, this was a really poor follow-thru. Not much to cheer about. The US dollar was barely up, but most commodities took it on the chin. While there were pockets of success (broker dealers), the big names are still hovering around the 50-day moving average. It was literally a great Monday followed by a lack of enthusiasm all week.

ClearWater Market Commentary as of October 13th, 2020

Canadian markets climbed last week with the driver being the better than expected economic data and the anticipation that another…

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