Good Monday morning. Heads up: I’m scheduled to be on Fox Business “Making Money” with the always dapper, smart-money minded Charles Payne today in the 2PM EST hour. We have a lot to talk about…hope you can join us!

Beginning in mid February we began telling you that many of our leading indexes and sectors were hitting (short term) extreme overbought levels and that seasonality was turning bearish. Here’s why we didn’t recommend taking profits; long-term megatrends…like the Innovation Revolution that’s underway today...aren’t impacted by short-term, counter-trend moves in the stock market. 

In other words, like the 7 previous shakeouts in the S&P 500 (from the birth of the bull market), that took SPX below its 100 dma and similarly, like the 3 previous shakeouts in Nasdaq that took it to its 200 dma...this too shall pass. In a refrain that long timers will recognize; the smartest smart money strategy from the birth of the bull market has been “buy the dip.” We see this dip ex...