Column: Stock prices may be heading for increases


Commentary Jack Brinson

As of Jan. 23, a major uptrend has been indicated. This is what we’re seeing:

Trends: The Brinson Composite Indicator has now turned up, which indicates stock prices should move higher in the next few months. VTI, a Vanguard ETF of 3000 of the most active stocks has gone down 28 percent from its high during the first week of January 2022.

Positive: Breadth indicators, momentum, market leading spreads and other market indicators such as VTI, QQQ, and SPY have reversed from this downturn.

Negative: Stock prices in most cases made their high in November and December 2021 and the first week of January 2022. So, prices were down for 10 to 12 months. The bottom was made in mid-October. Many issues, especially those in the tech industry, went down much more than 28 percent.

What’s next: Many of the issues that held best (good relative strength) will be on the list of better performers in the coming months.

Jack Brinson of Carmel is a former registered investment advisor and an occasional contributor to Current Publishing.  This column is not to be construed as having specific advisory recommendations.  All ideas presented are entirely those of the author.  No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses.  No representation or implication is being made that using Brinson’s methodology or system will generate profits or ensure freedom from losses. Each individual’s or institution’s success depends on their background, dedication, desire, motivation and use of their own advisor. You may write Brinson at [email protected].