The Mother of All Buy-the-Dip Signals Just Flashed
Manage episode 489592790 series 3345764
Sometimes the market whispers. Other times, it shouts. Yesterday, the market didn't whisper — it roared! Host Carol Dewey unpacks the significance of a Zweig Breadth Thrust—one of the rarest and most reliable technical indicators in market history—which just triggered. This isn’t just any buy-the-dip signal; it's the mother of all buy-the-dip signals, boasting a 100% success rate for higher markets six and twelve months later since World War II, with an average 12-month return of +25%.
But it's not just the Zweig Breadth Thrust flashing green. Carol reveals a perfect storm of bullish technical signals forming right now, including the 70% Advancers Signal (100% success rate, +23% average 12-month gain in past seven instances) and a powerful Bollinger Band Reversal (100% success rate, +16% average 12-month gain after prior instances). The episode also details how the Breakaway Momentum Breadth Thrust is on the verge of triggering, another legendary signal with a 95% success rate. These technical fireworks are reinforced by improving fundamentals: thawing trade war tensions, the Federal Reserve preparing for rate cuts, and strong corporate earnings from AI leaders like Alphabet (GOOG), Texas Instruments (TXN), Lam Research (LRCX), and ServiceNow (NOW). This is Wall Street's version of "all systems go" – don't miss this opportunity!
🔍 What You’ll Learn in This Episode:
✔️ The mechanics and historical reliability of the Zweig Breadth Thrust, a rare signal that has preceded 100% positive market returns six and twelve months later since WWII.
✔️ The significance of the 70% Advancers Signal on the NYSE, indicating broad-based institutional buying and consistent historical gains.
✔️ How a dramatic Bollinger Band Reversal from deeply oversold to full recovery signals a powerful market whiplash reversal.
✔️ The imminent trigger of the Breakaway Momentum Breadth Thrust and its strong historical track record for predicting market gains.
✔️ Why thawing trade war tensions (average effective U.S. tariff rate dropping from 27% to about 20%) and potential upcoming trade deals are bullish catalysts.
✔️ The increasing likelihood of Federal Reserve rate cuts, with Cleveland Fed President Beth Hammack's recent comments hinting at a June cut if data supports it.
✔️ Evidence of strong corporate earnings, particularly from companies at the forefront of the AI boom like Alphabet, Texas Instruments, Lam Research, and ServiceNow.
✔️ Why now is a critical time for investors to be disciplined, strategic, and optimistic, advocating for a "buy the dip" approach on quality names.
📘 Mentioned in This Episode:
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60 episodes