The Wrong Tail of the Curve

Let me be clear: Pinnacle’s investment mandate is to outperform over a complete market cycle, and that definitely includes outperforming in bull markets. Lately, however, the bull markets have been built on the back of extreme monetary and fiscal policy. It was just about this time last year that Pinnacle’s investment team found themselves on…

Managing Money in a Manic Market

Right now the market is being jerked around by headlines that change by the hour. At 3pm on Tuesday, a story broke about a deal between Germany and France, and the market soared in the last hour of trading. Then about 5 minutes before the close, the story was refuted and the market quickly turned,…

ISM Manufacturing Index

The Manufacturing ISM Report On Business, issued monthly by the Institute for Supply Management, compiles a survey of the nation’s supply executives to gauge economic activity in the manufacturing sector. The report is typically considered one of the growth barometers the market watches most closely. The results of the survey are ultimately condensed into a…

The Battle Continues

For two months, the bulls and bears fought a battle between 1230 and 1120 on the S&P 500 before briefly breaking to new lows on October 4th. After an amazing short covering rally that has taken the price level back to 1230, resistance is being met once again. The chart below is the price chart…

The Most Important Characteristic

I recently saw a research piece from Wolfe Trahan where the well-known and highly respected analyst, Francois Trahan, referenced the book, Good to Great, in discussing the “best” portfolio strategies. It got me thinking about Pinnacle’s investment methodology and how we continually attempt to improve how we do what we do. I’m not sure how…

A Bullish Divergence in Financials

Now that we are positioned for things to go wrong, what could go right? I have noticed that momentum divergences seem to be forming. A momentum divergence is a technical condition where momentum does not confirm price movement. The chart below shows this divergence by using the Financial Sector SPDR price chart in the top…