Thoughtful Money with Adam Taggart

Current Bear Market Rally To Bring "More Pain This Year" | Tom McClellan

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May 25, 2025
Tom McClellan, a seasoned technical analyst and ex-Army helicopter pilot, dives into the turbulent currents of today's financial markets. He discusses the recent bear market rally, questioning its longevity and predicting more pain ahead. McClellan shares insights on market liquidity, the effects of oil prices, and the psychological factors driving investor behavior. He also emphasizes the significance of historical trends and technical indicators in navigating this volatile landscape, and hints at opportunities in the agricultural sector for savvy investors.
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INSIGHT

Unusual Market Breadth Signals

  • The New York Stock Exchange advanced decline line's new all-time high signals strong market breadth and liquidity.
  • This strength is unusual for the first year of a new presidential term from a different party, conflicting with typical market cycles.
INSIGHT

Junk Bonds Signal Liquidity Stress

  • The corporate high yield bond advanced decline line lags stocks, indicating liquidity may be tightening despite stock breadth strength.
  • Divergences in this bond data can be reversed, which may change bearish warnings into neutral signals.
INSIGHT

Zweig Breadth Thrust Signals Bullishness

  • The Zweig breadth thrust signal marks sharp shifts from weak to strong market breadth and often precedes bullish moves.
  • However, exceptions occur where signals precede lower market lows before an eventual uptrend, suggesting caution.
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