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By now, the market’s decline is dominating the news headlines. The world is paying attention and there is a sense of panic in the air. Does that mean we’ve bottomed out already? Absolutely not.

But our discipline in staying on top of weekly sector performance allows us to easily measure the market’s appetite for risk going into a new week. 

And based on what the market is saying here, it’s still high-time to stay defensive. Let’s take a look… 

When the Market Talks, We Listen

Just take a look at this ranking table here. There is absolutely no justification to be aggressively long this market right now. 

This doesn’t mean that you go out and sell everything in your portfolio. In fact, I would encourage you to be on the lookout for the names holding up the best in this environment.

The market is clearly discounting a slowdown in consumer spending here, with sectors like consumer staples and utilities running the tape. Remember: These are some of the last expenses consumers are likely to make cuts on (food, toiletries, electrical bills, etc.).

The good news is that we know what to look for when the market is trying to hammer out a bottom.

Until we see tech, consumer discretionary, or even communications pop back onto this leadership board, I’m happy to sit in a cozy cash position.

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