In today's premarket video, we discuss $BBAI in detail, and we review the market. The open for US Equities looks strong based on global markets advancing and the futures.
We discuss the strength in fixed income, although the same pattern in stocks where lows go lower. So, continue to watch 'falling knives' but don't try to catch them yet. FOMO is a cost effective strategy, as your downtrodden stocks are more likely to be cheaper in a week or two.
We end our video sharing the three 'best' portfolios to own based on our model run last night. These would be purchased and held equally (say $100 apiece). These will do well today if the market stays green and rises on this options expiration day.
We also look at the variance of the market price action.
$SPY which is the S&P 500 Equity Index has rising variance. It is 1.25 x 10-4. The overall set of 2000+ stocks with positive fundamentals has a price variance of 1.37 x 10-4. The stocks with weaker fundamentals have a variance of 4.2 x 10-4.
This is quick, anecdotal evidence in the data that says to buy and hold stocks in companies that are profitable and perform well. You can still make profit by investing in turn-around stories but it is easier, calmer, and more of a hands-off strategy to invest in strong, sound, profitable companies which generate strong cash flows from operations.
It is funny that we feel so 'stodgy' or 'old' when we say this publicly. However, it is true. You sleep better at night when your money is invested in companies that make a profit, generate cash from their operations, and pass all the other data validation steps we have in place to help ensure investor protections and liquidity.
Good luck to everyone in the market today.
Remember, if you watch to the end you will see our three portfolios that were picked by our CQNS model to go up today if the market stays green. They should outperform the $SPY over time even if the markets continue to stay choppy (lower risk and higher expected return).
Stock Market BLOG
President and Investment Advisor Representative