Page title

“I never use valuation to time the market. I use liquidity considerations and technical analysis for timing. Valuation only tells me how far the market can go once a catalyst enters the picture to change the market direction. The catalyst is liquidity, and hopefully, my technical analysis will pick it up.”

That is why, despite being a fundamental research report, we regularly incorporate technical analysis in the Sevens Report, including our monthly Market Multiple Table Chart, Dow Theory updates, VIX analysis and as-needed technical takes referencing key levels to watch, especially when volatility spikes or markets approach key tipping points.

The daily Sevens Report has always been a fundamentally focused and macro-oriented product geared towards helping financial advisors better understand major market themes and influences, save research time, and communicate with clients in order to grow their businesses.

I believe Sevens Report Technicals is the perfect complement to the daily Sevens Report as it provides a thorough and in-depth weekly dive into the technical backdrop of the same markets we’re covering in the Sevens Report. This new technical product effectively illustrates, in a visually focused and chart-based format, all of the key concepts covered within the Sevens Report, but it also provides deeper insights into the major trends across global markets and various asset classes so financial professionals are never blindsided by a market reversal or major trend change.

How Can Sevens Report Technicals Help You?

I started the Sevens Report in 2012 from a desk in my guest bedroom, and despite limited resources and a lot of naysayers, I was confident I could make it a successful product because I had one clear mission: Produce research that makes financial advisors' lives easier, and helps them grow their businesses.

I believe that Sevens Report Technicals is the next step in this mission.

It’s one thing to explain this new research solution as we have to this point, but it is another to provide real life, specific examples of how and when technical analysis became critical to navigating markets in order to fully understand how good technical analysis can help you with your financial advisory business and personal investments.

During the early stages of the COVID selloff in early 2020, one of the key volatility gauges we consistently monitor, the term structure of VIX futures (something few on Wall Street ever discuss), offered a clear warning sign that volatility was poised to surge as it inverted deeply, signifying investor panic.
Then in late March, it was again technicals that helped us confidently declare that a bottom had formed in the equity markets. Specifically, an oversold condition in the S&P 500 via the RSI indicator (something that has helped identify bear market bottoms for decades, which we follow religiously) and the VIX rolling over days before the S&P hit cycle lows were two of the notable “bottoming” signals we received.

When used in conjunction with the daily Sevens Report, advisors will be armed with the technical analysis they need to keep perspective on current trends in the markets.

Take the more recent example of value vs. growth, a topic that’s dominated Wall Street since late 2021. It is one thing to have read the fundamental analysis within the Sevens Report from late 2021 to early 2022 that suggested favoring value over growth styles in equity allocations (which, in hindsight, clearly worked for all last year), but it would have been another to actually be able to see the trends emerging in real time on the charts (note the Relative Strength reversals in the gray circles in the charts below).

Furthermore, the chart comparison above offers clear evidence of the shift in investment flows that could help in discussions with clients who may have been letting the classic “greed emotion” skew their investment preferences given the long-lasting leadership of growth stocks before the 2022 bear market. Clearly, in hindsight, of course, staying over-allocated to growth stocks in 2022 would have been a costly decision, badly hindering long-term investment goals.

Conversely, the “fear emotion” can also be very detrimental to a client’s decision-making process, and once again, the analysis within Sevens Report Technicals can help prevent investors from panicking and selling long-term positions at the worst possible time.

What’s In the Sevens Report Technicals Report?

In this new research report, we start with the low time frame trends in the major equity indices and what can be expected at the start of each new trading week.

We also include more frequent updates of where the market is trading against the current month’s Market Multiple Table levels, where the major indices are trading relative to the most widely followed moving averages (50-, 100-, and 200-day MA’s), and consistently monitor the latest Dow Theory signals.

Once we have established the primary trends across the broader equity market, we zoom in to identify which investment style (think growth vs. value) is in favor for new market allocations and more active money managers.

We also examine the 11 major S&P 500 sectors, providing insight into which corners of the market are outperforming, underperforming, or moving in-line with the S&P. A brief write-up is included with each sector chart with Relative Strength to the S&P 500 being the primary tool for identifying opportunities. Whether you are a long-short portfolio manager, or a long-term focused buy and hold advisor, these technical insights into sector trends can help deliver alpha to investors.

Following the sector “deep dive” we move into other asset classes, covering the current price action and primary trends of bond markets as well as commodities and the dollar index before rounding out the weekly report with an update on the CBOE Volatility Index and what the near to medium term outlook is for implied volatility.

In sum, it’s a comprehensive, weekly technical look at the markets that compliments and expands on the events and trends we’re discussing in the daily Sevens Report.

When We Approach Critical Market Tipping Points, Understanding Money Flows and Price Action Becomes Paramount

One of the calls I’m most proud of in the eleven-year history of the Sevens Report was our loud and clear caution on the markets starting in early 2022, and that internal call came about because of the combination of both fundamental and technical research!

As fundamentals were deteriorating and macro headwinds were building, we quickly realized that the inverse relationship between the S&P 500 and the VIX started to change and the reason was very likely smart money liquidation, also known as the distribution phase of the market cycle, which is the first phase of long-term bear markets. Armed with this knowledge, we advocated for advisors to get more defensive and reduce volatility, and in doing so helped to at least partially avoid some of the more painful periods of the worst year for markets in decades.

We use our specialized skillset, cross-market technical analysis, to help support your business growth.

Every week we provide a fresh look at stocks, bonds, commodities, and select currencies to help provide perspective on the major market developments that have the capacity to impact your advisory business or personal investment accounts.

With historic uncertainty, it’s never been more important to have a combination of fundamental analysis and technical perspectives on this market because while fundamentals may be clear, the timing of such moves remains uncertain and technical analysis will help us nail down that timing!

We spend our time focused on the dominant price action and diving deep into the market internals, constantly eyeing lesser followed indicators. We analyze relationships between asset classes and reveal market dynamics that can offer early insight to trend changes or sudden bursts of volatility.

Over the years, there has been a steady demand for technical research to complement our daily fundamental analysis in our flagship Sevens Report publication. Subscribers repeatedly write in with technical questions about the broad markets and send requests for larger, clearer versions of the charts included in the daily report.

And while we have been able to provide timely updates on the technical backdrop of the market in the daily report, our ability to do so has been limited by both space in the publication itself and the time needed to execute the analysis, and that has unfortunately left a void in our research offerings since Sevens Report Research began over a decade ago.

That changed with the creation of Sevens Report Technicals.

Start Your Risk-Free Subscription Today

Sevens Report Research is built on retention, something we achieve by charging below industry prices and providing exceptional value, and Sevens Report Technicals will be no different!

Quarterly subscriptions are priced at $225/quarter, while an annual subscription is priced at $825 which, like all Sevens Report Research publications, receives a one month discount for the annual commitment.

Additionally, we are extending a limited time offer for Sevens Report Technicals, where new subscribers will receive an additional month free on a quarterly or annual subscription! That means new quarterly subscribers get four months for the price of three (a $75 savings) and annual subscribers get 13 months for the price of 11 (a $150 savings!).

And, also like all Sevens Report Research publications, we offer a free grace period, whereby you can request a full refund for any reason within one month of when your subscription began.

So, you take literally no risk to see if Sevens Report Technicals can help you and your business grow.

To start your risk-free subscription to Sevens Report Technicals today, click the button below.