THIS WEEK’S FOCUS

Understanding Market Cycles 📊

This week, we're diving into a topic every investor needs to understand: Market Cycles. Knowing whether you’re in a bull, bear, or sideways market is crucial to making smart investment decisions, and we're here to help you recognize these phases with confidence. Plus, we’ll show you how Surmount’s data-driven strategies can adapt to any market environment, so your investments stay optimized through every twist and turn.

INVESTMENT OPPORTUNITY

TQQQ-SPY Midday Reversal 🚀

Looking for a way to take advantage of intraday market movements? Check out this week’s featured strategy: TQQQ-SPY Midday Reversal. It’s designed for investors who want to leverage the midday dip in the market and make the most of intraday volatility.

Here’s how it works:

• Buy TQQQ Midday: When the market dips around midday, this strategy buys shares of TQQQ, the triple-leveraged ETF tied to the Nasdaq 100. It’s a great way to capture a rebound in tech stocks.

• Sell TQQQ at the End of the Day: As the market typically recovers in the afternoon, this strategy sells TQQQ before the closing bell, locking in potential gains from the midday dip.

• Hold SPY with Remaining Capital: Any unused capital is allocated to SPY, providing a balanced exposure to the broader market while keeping a portion of your investment in a stable asset.

Why It Works:

• Capitalize on Volatility: TQQQ can amplify gains during midday recoveries, turning small moves into bigger returns.

• Balanced Approach: Holding SPY with the remaining capital keeps a steady foundation while allowing for tactical plays.

Start Automating This Strategy with Surmount!
Our platform makes it easy to execute this strategy without constant monitoring. Let Surmount handle the buys, sells, and adjustments, so you can focus on the bigger picture.

DECODE THE MARKET’S MOVES

Market 101: What Are Market Cycles? 🔍

Market cycles are the natural rise and fall of prices over time, reflecting how economic and market conditions shift. Whether you're new to investing or a seasoned pro, understanding these cycles is crucial to making informed decisions.

But here’s the catch: not all market phases are created equal! Investors need to be aware of three primary cycles—Bull, Bear, and Sideways markets. Knowing how to recognize these can be the difference between a good decision and a great one.

RIDE THE UPTREND

The Bull Market: When the Bulls Charge Ahead📈

What is a Bull Market?
A bull market is when stock prices are on the rise, typically increasing by 20% or more. It’s the phase where optimism reigns, companies perform well, and economic growth is often at its peak.

How to Spot a Bull Market:

• Positive Economic Indicators: Look for strong GDP growth, low unemployment, and increasing consumer spending.

• Rising Stock Prices: A series of higher highs and higher lows in major indices like the S&P 500 can signal bullish momentum.

• Investor Sentiment: When everyone’s talking about their gains and the market’s on fire, you’re likely in a bull phase.

At Surmount, our data-driven strategies are designed to thrive in bull markets by leveraging momentum-based approaches. By identifying stocks with strong upward trends, we automate your investments to ride the wave without missing a beat.💡

Tech Stocks in a Bull Market: A Growth Play 📊

During bull markets, technology stocks often lead the charge, driven by investor optimism and innovations that promise growth. ETFs like TQQQ (leveraged exposure to the Nasdaq 100) can magnify these gains during bull phases, making them a popular choice for traders looking to capitalize on tech momentum.

Why Tech Shines in Bull Markets:

• High Growth Potential: Tech companies often benefit from increased consumer and business spending during economic expansions.

• Innovation Push: Emerging technologies like AI, 5G, and cloud computing become significant catalysts for stock appreciation.

When you use Surmount, you can track these tech trends and ensure that your portfolio adjusts to capture growth opportunities. Our TQQQ-SPY Midday Reversal strategy is a perfect example of how to leverage intraday movements in tech stocks. 🚀

PROTECT YOUR PORTFOLIO

The Bear Market: Staying Calm in the Storm 🐻

What is a Bear Market?
A bear market is the opposite of a bull—a decline of 20% or more in stock prices from recent highs. It’s often associated with economic downturns, rising unemployment, and decreased corporate earnings.

How to Spot a Bear Market:

• Negative Economic Data: Think declining GDP, rising unemployment, and tighter monetary policies.

• Stock Price Declines: Consistent lower lows and lower highs signal that the bears are in control.

• Fearful Sentiment: If “recession” is the buzzword on everyone’s lips and investors are panic-selling, the bear has emerged.

In bear markets, Surmount’s algorithms pivot to capital preservation, employing defensive strategies like inverse ETFs or allocating a higher proportion of your portfolio to bonds and cash. We help ensure that your investments are positioned to withstand the downturn while keeping an eye out for recovery opportunities.

Defensive Investing During Bear Markets 🛡️

Bear markets can be challenging, but they also present opportunities to adopt more defensive investing strategies. Historically, sectors like healthcare, utilities, and consumer staples have proven resilient during downturns, as demand for their products remains stable even when the economy slows.

Defensive Strategies to Consider:

• Shift to Bonds: With interest rates still elevated, bonds can provide a safer haven during market downturns, offering a steady income stream.

• Focus on Dividend Aristocrats: Stocks that consistently pay dividends can help cushion your portfolio against market volatility.

• Inverse ETFs: For more aggressive investors, inverse ETFs can be a way to hedge against declining markets.

SURVIVE THE STAGNATION

Sideways Markets: Navigating the Flat Line 📊

What is a Sideways Market?
Also known as a range-bound market, this phase occurs when prices trade within a narrow range without a clear upward or downward trend. It can be frustrating for investors, as the market seems to move without direction.

How to Spot a Sideways Market:

• Flat Economic Indicators: Economic data doesn’t change drastically—no big surges or drops.

• Stable Price Patterns: Stocks bounce between support and resistance levels without breaking out.

• Low Volatility: The market appears calm, but don’t be deceived—sideways markets can precede big moves.

Sideways markets call for adaptability. Surmount’s data-driven strategies focus on mean-reversion techniques and income-generating assets like dividend stocks. By adjusting allocations to capture small price movements, we keep your portfolio working even when the market is stuck in neutral. ⚖️

Turning Frustration into Profits 📈

With the right strategies, sideways markets can still be profitable. Here’s how:

• Range Trading: Buying at support levels and selling at resistance can be effective during these periods.

• Income Generation: Focus on assets like high-yield bonds, dividend stocks, or REITs to generate returns when capital appreciation is limited.

• Use Volatility to Your Advantage: Consider selling covered calls to earn premiums on stocks that aren't moving much.

WHEN TO ACT IN EACH MARKET PHASE

Timing the Market: Why It Matters (and When It Doesn't) 📅

One of the most common questions among investors is, "Should I try to time the market?" While many experts warn that timing the market can be risky, understanding market cycles can offer strategic entry and exit points. For example, buying into a bull market early can enhance returns, while transitioning to safer assets during a bear market can preserve capital.

General Guideline:

• Bull Markets: Favor more aggressive strategies and growth stocks as upward trends can sustain for longer periods.

• Bear Markets: Focus on value stocks, defensive sectors like utilities, and consider dollar-cost averaging into stable assets.

• Sideways Markets: Look for opportunities in income-generating assets like high-dividend stocks and consider short-term trades to profit from small price fluctuations.

ADAPT TO WIN

How to Thrive in Every Market Phase with Surmount 🧠

Adapting to market conditions can feel overwhelming, but that’s where Surmount comes in. With our automated investment strategies, you don’t have to guess whether it’s a bull, bear, or sideways market—our algorithms adapt to help optimize your returns based on real-time data and trends.

• Seize Opportunities in Bull Markets 🐂

• Protect Your Assets in Bear Markets 🐻

• Make the Most of Sideways Markets 📊

With Surmount, you stay ahead of market cycles, letting us handle the complexity while you focus on your long-term goals.