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Scanning Reports
Monthly Chart Book
Sector Deep Dives
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“We believe in probability, not prediction.” – Dan Russo, CMT
01.
Scanning Reports
Weekly scans of stocks and ETFs across different categories (Broad Market, Sectors, Global Regions, Countries, etc.)
02.
Sector Deep Dives
A twice a week in-depth look into one of the eleven sectors of the S&P 500.
03.
Chart Book
A monthly recap of what we’re seeing across the industry, delivered in an annotated PDF Chart Book for easy reference.
04.
Small Cap Ideas
A look at opportunities within the small cap space, presented mid-week.
05.
Intermarket Analysis
A weekly note that analyzes important Intermarket relationships. Is the environment currently Risk-On or Risk-Off?
06.
Mythbusters
Quantitative tests to examine and dissect technical analysis lore. Fewer explosions than the eponymous television show, probably.
07.
Know What You Own
A monthly deep dive into popular mutual funds and ETFs. Do you know what you hold within your portfolio beyond the name?
08.
Conference Calls
A recorded monthly conference call reviewing the best charts, what has our attention, and what to look forward to in the month ahead.
09.
Exclusive Content
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The Team
Our people give us the drive, the experience, and the passion to bring you an unparalled RIA experience.


The Daily Note
A glimpse at our daily Market Research; see what we see each morning.
Who Charted? (E27)
Looking for Less Bad
Dan Russo and Drew Wells highlight SPX Correlations, S&P 600, Copper Miners Relative to S&P 500, Small Caps / Large Caps, and more.
Communication Services:
When Will it End?
The picture for the Communication Services sector has worsened since we last looked at the group in a bearish light in April.
The Song Remains the Same,
the Focus is on “Less Bad”
At the risk of sounding like a broken record, “less bad” continues to be the focus for investors who must maintain an allocation to U.S. equities.
Hiding Out in
the Storm
As Global Equity market volatility remains elevated, the focus for investors who must maintain equity allocations continues to be a relative game.
The Losing Streak Reaches
Seven Weeks
Stocks remain under pressure in the U.S., with the S&P 500 and the NASDAQ 100 closing lower for the seventh consecutive week.
Unlucky Seven for the S&P 500
and NASDAQ 100
The bears remain in the control of the trend for the S&P 500, which closed lower for a seventh consecutive week last week.
How the Bulls
Can Take Control
Equities have staged a sharp four-day relief rally, a good starting point to arresting the decline that has gripped markets for much of 2022.
Who the F/** is
this for?
Think market research isn’t for you? Think again. Shelly and Dan break down why we created Research by Potomac and who it’s for.
Health Care:
Losing Less
Short-term breadth is making a recovery attempt from washed-out levels, leaving the door open to potentially attack the major moving averages from below.
Absolute Trends
Are Unimpressive
Except for Energy, there are few compelling absolute trends in the market. Some groups are trying to stage rebounds from logical support levels.
No Love for Stocks or Bonds,
Commodities Hang Tight
Global Equity & Interest Rate volatility continues to take its toll on balanced investors, with Commodities being the only space that’s held its ground.
Losing
Streaks
The losing streaks for U.S. and global equity markets continue to expand, and it is hard to make a compelling case for the asset class.
Weak
Streaks
Equities remain under pressure, with the S&P 500 and NASDAQ 100 notching six-week losing streaks.
Would You Be
Surprised?
With equities under pressure, it may be surprising to see Small Caps holding up relative to Large Caps over the past two weeks.
Investors Continue to Avoid Risk
in the Market
With the S&P 500 under pressure for a sixth consecutive week, is it not surprising to see the risk-off trends continue to play out.
Confirmation,
Not Divergence
It is bad. The question is, “is it bad enough?” We are not seeing divergences that lead us to believe that a durable bottom is in place.
Utilities:
Relatively Outperforming
Unimmune to the selling pressure, Utilities have finally given way to the market-wide volatility that’s gripped the indexes and sectors alike.
Can It Get Much Worse
Than This?
The only good thing that we can say about the breadth picture is that we have nothing good to say about the breadth picture.
Rallies are Likely
Countertrend
With stocks under pressure, sentiment has reached levels of excess fear.
Who Charted? (E26)
Riding the Rapids
Dan Russo and Drew Wells highlight Quality relative to Microcaps, S&P 500 and ATRs, Value, Growth, CCC or below OIS, and more.
The Focus Remains
on What Is “Less Bad”
The growth areas of the market remain under pressure on an absolute and relative basis.
Rallies are
Being Sold
Stocks in the U.S. and globally remain under pressure and in a defensive posture as rallies are being sold below declining moving averages.
May Monthly Call Preview
from Research by Potomac
Fans of Who Charted? catch this preview of Research by Potomac’s Monthly Market Call with Dan Russo, CMT®, and Drew Wells, CMT®, CIMA®.
Risk-Off Remains the Main Theme
of the Market
The message from the themes that we track continues to be one of risk aversion on the part of investors.
Improving From Depressed Levels,
But More Work is Needed
There was some improvement in the breadth metrics, rebounding slightly from the depressed levels that were seen in the previous week.
Bearish Sentiment Moderates
but Stocks Remain Under Pressure
Bearish sentiment has moderated a bit over the past week as the S&P 500 and the NASDAQ 100 continue to test important areas of support.
Sector Deep Dive
from Research by Potomac
Breadth in the space has become a condition of “so bad, it’s good.” Risk management remains key at these levels.
Defensive Sectors
Come Under Attack
Over the past week, we have learned that in a bear market, even the defensive sectors eventually come under attack.
Support Begins
to Give Way
Key support levels are being tested or broken for equities around the world. Commodities remained the leading asset class and closed higher.
Most Risk-Off Trends
Continue
Risk ratios continue to send the same message of investors’ unwillingness to take risk within the markets.
Breadth
Declines Abound
Market volatility has taken its toll on market breadth over the past week, as readings have declined broadly.
Know What You Own Preview
from Research by Potomac
Across asset classes, timeframes, and geographies, price momentum continues to confound individual investors and hardened market researchers.
Looking Out
Over the Edge of the Cliff
The S&P 500 and the NASDAQ 100 have traded to key support levels, while the S&P 600 has broken below.
Playing the
Relative Game Now
Investors who must maintain an allocation to U.S. equities are now likely playing a relative game, finding pockets of the market which are less bad.
Who Charted? (E25)
Living on the Edge
Dan Russo and Drew Wells highlight the Bloomberg Commodity Index, S&P 500, QQQ/RSP, U.S. Dollar Index, and more.
Weekly Macro Trends
from Research by Potomac
Key support levels haven’t broken, but there’s no denying the bearish bias to current trends we’ve been highlighting for the past few weeks.
Stocks and Bonds Continue
to Trade Down Together
Equities remain offered while treasuries fail to provide much cover. Commodities retain their bullish trend but were not spared last week.
Still Not in the Mood
to Take Risk
Themes and relationships that we track in this note have continued to send the message that there is a lack of risk appetite.
Market Breadth
from Research by Potomac
In this note, we will look at the major U.S. averages and attempt to add context to the current position of the various A/D Lines.
Some Improvement in the Picture,
but Not for the NASDAQ 100
There were improvements in the breadth metrics for the NYSE, S&P 500, and S&P 600. Metrics have declined over the past week.
Equities Are Stuck
in Neutral
Equities are fighting hard just to maintain their neutral trends and avoid breaking important support levels.
Who Charted? (E24)
Regime Shift?
Dan Russo and Drew Wells highlight International Bonds, Crude Oil (Futures), the RbP Regime Index, and more!
Bullish Trends Are Few
and Far Between
The groups that are in clear bullish trends (Energy, Staples, and Utilities) are few and far between. Growth sectors continue to lag.
Commodities Reassert
Their Bullish Trend
Commodities have begun to resume their uptrend, putting an important resistance level in their sights.
A Mixed Bag
of Breadth Data
After snapping a three-week streak of improvements last week, the most recent breadth data is mixed to slightly lower.
Small Cap Ideas
from Research by Potomac
The real action has been under the surface. As the battle between the bulls and the bears heats up, which way will small caps break?
Equities Fade and Commodities
May Be Ready to Move Again
Commodities remain the most bullish trend across asset classes and may be on the verge of a continuation.
Defense is the Name
of the Game
The defensive pockets of the S&P 500 continue to garner the most attention, with many breaking to a new high on an absolute and/or a relative basis.
Looking Like
a Bear Market Bounce
Stocks came under pressure last week, unable to maintain strength from the March lows. The rally is beginning to look more and more like a bear market bounce.
Not in the Mood
to Take Risk
Many of the themes that we track continue to point to a market where investors are unwilling to take on excess risk.
Breadth Turns Lower,
Ending a Three-Week Streak
While most of the metrics have weakened, the declines are most pronounced in the short-term data and in the Small Cap index.
It’s Getting Harder
to Make the Bullish Case
Commodities remain in a bullish trend and are likely still under-owned. These dynamics play out while sentiment is in a neutral position.
Who Charted? (E23)
It’s All About the Bond Market
Dan Russo and Drew Wells highlight Stocks (VTI) relative to Bonds (BND), S&P 500 Utilities Index, Pacific Ex-Japan (EPP) and more.
Tuesday Sector Deep Dive Preview
from Research by Potomac
Real Estate has displayed impressive strength, managing to break above resistance and clear both 50 & 200-day moving averages to the upside.
Growth and Defensive Sectors
Show Bullish Traits
The growth sectors of the S&P 500 continue to improve, especially Technology and Consumer Discretionary.
Make or
Break Week
After a strong move over the past two-three weeks, the U.S. and global equities are showing signs of indecision.
Not Ready
Yet
After showing some improvement in the prior two weeks, the themes that we track to gauge risk appetite in the market have begun to stall.
Can We Call It a Streak?
Breadth Improves for a Third Week
As we enter the final trading day of the first quarter, breadth metrics continue to improve across major U.S. markets.
Bear Market Rally or
Something More?
Bulls want to see the S&P 500 hold above 4,550 to have confidence that this is more than a rally within a bear market.
Time to Pay Attention
to the Growth Themes Again?
Technology and Discretionary are leading a possible resurgence in the “growth” themes under the surface of the S&P 500.
Bullish
Follow-Through
Small Caps were a disappointment and have given up some of the relative strength that they fought so hard to gain in the prior month.
Know What You Own Preview
from Research by Potomac
SPHB’s effectiveness depends not only on its own characteristics but the methodology in which it is applied in an existing portfolio.
Decidedly
Neutral
The positioning of the themes and relationships that we track is decidedly neutral (except for Discretionary/Staples).
The Start
of a Streak?
Breadth data improved for a second consecutive week, except for the Small Cap metrics. We are most impressed by the advances in the NASDAQ 100.
The Trend Is Up for Grabs,
Who Is Going to Take It?
The countertrend rally that we highlighted for equities last week has taken the U.S. averages into neutral positions.
Who Charted? (E22)
Is the Tide Shifting?
Dan Russo and Drew Wells highlight SPX and 10/20 Breadth, NDX Upside Breadth, International Growth vs International Value, and more.
Cyclicals Shine
as Equities Rebound
The growth sectors of the market have staged impressive rebounds, but trends remain mostly bearish until key moving averages are retaken.
Weekly Macro Trends Preview
from Research by Potomac
This is a step in the direction of alleviating some of the bearish pressure that has built up since the beginning of the year.
Alleviating
Some Bearish Pressure
Last week’s rally in equities served to improve their positioning from one where the bears were on the verge of taking control to one that is more neutral.
Not Going Down
Without a Fight
Most of the themes and relationships that we track to gauge risk appetite have staged rallies along with risk assets this week.
But Can These Improvements
Be Sustained?
A persistent theme this year has been an inability to build on these improvements when they have taken place.
A Countertrend
Rally?
Equity indexes in the U.S. are in a position to embark on countertrend rallies, something that we began to explore last week.
The Key Is Finding
What’s Less Bad
For the second week in a row, “less bad is good enough” for investors who must maintain an allocation to equities and are playing the “relative” game.
Intermarket Analysis Preview
from Research by Potomac
On January 28th, we highlighted that rising rates and a flattening yield curve create an environment that has historically led to a weakness for QQQ.
Walking a Tightrope
of Support
Momentum is beginning to shift in favor of the bears, which would lend confirmation to any support breaks that play out in the weeks ahead.
An Eye Toward
Risk-Off Positioning
The trends for the key themes that we track remain largely tilted toward less risk-taking on the part of investors.
Breadth
Is Still Bad
Since the start of the year, improvements in breadth have been short-lived. This week is another case of the metrics moving lower after the previous week’s improvement.
Small Cap Weekly Preview
from Research by Potomac
The real action has been under the surface. As the battle between the bulls and the bears heats up, which way will small caps break?
Small Caps
Continue to Surprise
Small Caps continue to outperform and have yet to break down on a relative basis. Commodities mark a big reversal day.
Who Charted? (E21)
Breaking Key Levels
Dan Russo and Drew Wells highlight Microcaps, Bloomberg Commodity Index, Biotechnology, 10-Year Treasury Note and more.
For Leadership,
Less Bad is Good Enough
For investors who must maintain an allocation to equities, there are only two sectors that have strong absolute trends (Energy and Utilities).
Stocks Still Seek
a Clear Direction
The more interesting story is under the surface in the U.S., where Small Caps are exhibiting better relative strength.
Mixed Messages Across
Intermarket Themes
The move higher in the Lumber/Gold Ratio and the Small Caps vs. Large Caps Ratio point to some increased risk appetite on the part of investors.
Better, but
Will It Last?
We have seen bouts of improvement at various points over the past few months, but they have proven to be short-lived.
Fear Levels in the Market
Are High
The major averages in the U.S. are doing all that they can to hold important support levels. Sentiment has become more fearful.
Tuesday Sector Deep Dive Preview
from Research by Potomac
We find it interesting the group has not done a better job of living up to its defensive reputation, and we use this note to uncover possible causes.
There Is Still
a Lot of Work to Do
Energy remains the best trend in the market. There are only four sectors that are trading above their respective 200-day moving averages.
Geopolitical Market
Update
With the geopolitical market turmoil caused by Russia’s invasion of Ukraine top of mind, Research by Potomac’s Dan Russo, CMT, provides perspective.
Stuck in Neutral
After Holding Support
While there has been no lack of geopolitical events with the potential to move markets, the major U.S. averages all managed to hold key support levels.
Intermarket Analysis Preview
from Research by Potomac
While we’re not in the business of trying to handicap the Fed, we can look at Intermarket relationships to determine where risks may be hidden.
Trends Remain Risk-Off but
Momentum May Be Ready to Shift
Growth vs. Value and Discretionary vs. Staples have both flashed a bullish RSI divergence at recent price lows.
Down, but Not
Washed Out
Breadth metrics have weakened across the board as equities have come under pressure this week.
Support Levels
Are Being Tested
S&P 500 and NASDAQ 100 have traded down to important support levels while their 14-day RSIs have made a small bullish divergence.
Who Charted? (E20)
The Death Cross
Dan Russo and Drew Wells highlight the Equal Weight Small Cap Ratio, NASDAQ Composite, Latin America, Gold and more.
Three Sectors Stand Out
with Stocks Under Pressure
Defensive groups held up on a relative basis last week, but this simply meant less bad as equities were under pressure broadly.
Small Caps
on the Radar
Generally speaking, the message of the market remains murky based on the themes that we cover here.
Improvements
in the Small Cap Data
Broadly speaking, the breadth picture remains less than impressive across the major U.S. markets.
All That News and
No Change to Trends
For all the news surrounding the Fed and Russia, there was no change to the trends for major assets that we cover.
Leadership is
Up for Grabs
Defensive groups have failed to take advantage of increased volatility, arguably a datapoint that favors the bulls.
U.S. Equities Remain Stuck in Neutral
as Global Stocks Lead Again
Stocks came under pressure, keeping the major averages in neutral positions between clearly defined support and resistance levels.
Are Commodity Themes Confirming
the Move in Rates?
Commodity themes are taking the Fed at face value, moving to the upside along with rates.
Signs of Improvement
in the Breadth Picture
Breadth metrics have improved over the past two weeks, with the greatest improvement being seen in the S&P 500 data.
Looking for Some
Upside Momentum
It would be encouraging to see resistance broken to the upside along with improvements in momentum to increase confidence.
In a Word,
“Sloppy”
With few exceptions, the word that best describes the absolute trends at the sector level is “sloppy.”
Who Charted? (E19)
Time for the Rest of the World to Shine?
Dan and Drew highlight Quality Stocks relative to Microcaps, the Global Dow, Frontier Markets relative to ACWI EX-US, and more.
U.S. Markets Remain in Repair Mode,
Global Stocks Hold Up Better
Stocks in the U.S. remain in repair mode, trying to fix the damage that has been inflicted on them since the start of the year.
Spinning Wheels
but Little Traction
The very subtle signs of life that we noted last week remain in place but have done little to gain much traction.
The Smaller and Broader the Index,
the Worse the Breadth
The broader and/or smaller the index, the more damage that has been done under the surface of the index.
Strong Rallies Across Equities,
but Now the Real Work Begins
Stocks in the U.S. have moved higher over the past three days, we note that there is much work to do for the bulls to reclaim control.
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Focus on the Best
Relative Trends
When selling pressure grips in the market, it is often helpful to identify the sectors that held up the best on a relative basis.
Support Levels
Give Way in the U.S.
Equities in the U.S. staged a late rebound on Friday, which held the S&P 500 while avoiding a fourth consecutive week of losses.
Very Subtle Signs
of Life
Lumber/Gold ratio has finally begun to succumb to the pressures that have been evident across the other themes that we track.
Breadth So Bad,
It’s Good?
Some metrics are at/near “washed out” levels that have the potential to lead to a near-term bounce.
Monday’s Lows Provide a Key Reference Point
for the Bulls to Shoot Against
If the bulls are going to mount a rally attempt, there are clear lines in the sand from which a counterattack can begin.
With Uptrends Hard to Find,
Consolidation is the New “Bullish”
Uptrends are hard to find (only Energy and Staples), neutral trends on an absolute basis led to outperformance on a relative basis.
Who Charted? (E18)
Are We Washed-Out Yet?
Dan Russo and Drew highlight the CBOE Volatility Index, S&P 500, NASDAQ 100, AAII Data, Small Caps, and Commodities vs. Stocks.
Support Levels
Give Way in the U.S.
Equities in the U.S. have begun to break key support levels shifting the burden of proof to the bulls.
Signs Point to a Lack
of Risk Appetite
The signs point to a lack of risk appetite on the part of investors this week. High Beta continues to struggle vs. Low Volatility.
Breadth Takes a Turn
for the Worse
While we have highlighted the poor breadth dynamics, we have been encouraged by a decline in new lows on the NYSE.
Look for a Near-Term Bounce
as Bulls Look to Reestablish Position
We note that the bulls are losing position and will have to fight hard to regain it. Commodities remain strong.
Absolute Trends Face Key Tests
as Trading Becomes Sloppy
On an absolute basis, there are a lot of key support levels being tested as the new week begins. Trends are becoming sloppy.
The Growth to Value Shift
Becomes Clearer
The bearish development in the Growth vs. Value theme became clearer.
The Breadth Picture
Is Unchanged This Week
While I wish there was something compelling to say about the market breadth this week, there just isn’t.
Battle Lines
Are Being Drawn
Battle lines are being drawn across the asset classes that we highlight in this Note, with key levels being tested and/or breached.
Who Charted? (E17)
The Growth to Value Shift?
Dan and Drew highlight the 10 Year Note, Bloomberg Commodity Index, High Yield Credit Spreads, S&P 500, Clean Energy, and more.
Tradable Lows
in the Growth Sectors?
The growth sectors of the S&P 500 all fended off a strong bearish attack yesterday to close near the highs of the range.
Travel Abroad
in 2022?
U.S. equities remain in bullish trends, but the pressure is mounting. Perhaps there will be a shift outside the U.S.?
The Tides Are Turning in
the Growth vs. Value Theme
The biggest change in the first week of the new year is the breakdown in the Growth vs Value theme.
Breadth Weakens Slightly,
but Should We Worry?
Breadth declined after weakness across the board yesterday. However, the metrics held up better than we would have expected.
Treasuries Finally Crack,
Boosting Small Caps and Commodities
The biggest developments in the opening days of 2022 are the improvements in the Small Caps and Commodities.
The Calendar Changed,
Sector Trends Have Not
The defensive sectors start the year by pulling back from record highs but remain in bullish trends above key support levels.
New Year,
Same Trends
The new year begins with the old trends in place. The S&P 500 continues to reward the “broad exposure of buy & hold crowd.”
Defense Is the Name of the Game
Despite Record Highs
Investors move into the final day of the year in a defensive posture despite the S&P 500 trading near record levels.
The Bearish Breadth Case
is Getting Harder to Make
The “bad breadth” thesis continues to erode for the bears as metrics improve across the board.
The S&P
is the Place to Be
Within the U.S. equity markets, the bulls retain the benefit of the doubt, but the best bet appears to be centered on the S&P 500.
Technology and Defensive Sectors
Lead the Way Higher
Technology and Defensive sectors lead the charge on the heels of the clean bullish setups that we highlighted.
The Bear Case Is Clear,
but Will Price Confirm?
Last week, risk assets largely improved across the board, though we note several market areas are currently testing resistance levels.
Short-Term Breadth
Metrics Turn Up
Breadth metrics saw a small improvement across markets this week, with the best results coming from short-term metrics.
We Would Like to See
Some Follow Through
Asset markets are searching for direction, with many trading in consolidations, unable to find a higher gear.
What Happened
to the Reflation Trade?
The sectors of the S&P 500 that should do well in an inflation regime appear to have peaked for now.
Will Short-Term Weakness
Hurt Long-Term Trends?
Short-term trading remains volatile, with a tilt toward “risk-off” across the U.S. equity landscape, timeframes matter.
Investors Shift to a
“Risk-Off” Stance
The case can be made that investors have shifted to more of a risk-off stance despite the S&P 500 trading near record levels.
The S&P 500 Doesn’t Care
That Breadth is Still Weak
The NYSE’s Advance/Decline Line is fighting hard to hold support as the index is knocking on the door of new highs.
The Lines in the Sand
are Clear
Equity Index bulls in the NASDAQ 100 and S&P 500 retain the benefit of the doubt for now, but the lines in the sand are clear.
“Defensive” Sectors
Continue to Improve
The S&P 500 is trading near record levels, but the “defensive” sectors have been exhibiting the most strength of late.
Who Charted? (E16)
New Highs are NOT Bearish
Dan and Drew highlight Momentum, Construction Materials, Health Care, Commodities vs. Stocks, NASDAQ Equal-Weight, and more.