As part of the STA’s educational offering, here is today’s interview (29 March 2019) with Ron William, of Ron William Advisory, with Jeremy Naylor, on IG TV. Many will recognise Ron as a regular attendee at our monthly meetings, and Jeremy is a veteran, and ex-Bloomberg presenter and interviewer.
The video kicks off with the statement that 2019 was the ‘’happiest New Year in 30 years’’ for the S&P 500. This is a new concept for me, but I’m assuming happiness equals bullish. As a derivatives trader, not a stockbroker, I have no directional bias as I know I can make money in bull markets, bear ones, and those going nowhere.
He immediately moves into cautionary mode, pointing out the many divergences in this latest quarterly rally, reminding us that history may not repeat itself but it often rhymes. He uses a dynamic regression line (which looks like it might be the bottom of a trend channel), something I’d be interested in finding out more about.
We then move on to the volatility VIX measure, where compression for several years, (except Q1 and Q4 2018), is seen as the calm before the storm. Then on swiftly to seasonality and breadth in US indices. He looks at FAANG stocks on a relative basis (see this week’s blog), interestingly starting at 0 rather than the more usual 100.
His charts are clear, bright and colourful, illustrating clearly what he’s saying. I must warn you that he speaks quickly, so you’ll have to keep up. Or, like me, you might just press the pause and rewind button.