John Kosar: Why It’s Worth Waiting Out The Market — And When To Jump In | Investing With IBD | Summary and Q&A

TL;DR

John Kosar from Asbury Research discusses recent market trends and explains his models for analyzing sector ETFs and asset flows.

Key Insights

• 💐 John Kosar emphasizes the importance of following asset flows to understand market trends and make informed investment decisions.
• 😜 The Asbury 6 model ranks sectors based on asset flows, allowing for early identification of potential trends and the ability to adjust positions accordingly.
• 🤩 For sector analysis, key levels such as the 200-day moving average help determine strength and direction.

Transcript

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Questions & Answers

Q: How does John Kosar use asset flows to analyze market trends?

Kosar tracks the movement of money in and out of sector ETFs to identify market trends and make investment decisions. By following the money, he can assess the strength of different sectors and adjust his positions accordingly.

Q: What is the significance of the 200-day moving average in sector analysis?

The 200-day moving average is a key level that can indicate the overall direction and strength of a sector. If a sector is trading above its 200-day moving average, it suggests a positive trend, while trading below it may signal weakness.

Q: How does John Kosar determine which sectors to invest in?

Kosar uses his models, such as the Asbury 6, to rank sectors based on asset flows. He invests in the top three sectors with the highest scores and rebalances his portfolio weekly based on the previous week's asset flows.

Q: How does John Kosar incorporate seasonality into his analysis?

Kosar considers seasonality as a potential headwind or tailwind for sectors. He doesn't use it as a sole reason to make investment decisions but uses it in combination with other factors to assess market conditions.

Summary & Key Takeaways

• John Kosar explains the importance of following asset flows to identify market trends and make informed investment decisions.

• He discusses the recent performance of sector ETFs, including XLU (Utilities), XLK (Technology), and XLC (Communications).

• Kosar highlights the significance of key levels, such as the 200-day moving average, in determining the strength and direction of these sectors.