L.M.
REPORTS
(a CFRA Business)
Market Outlook
Volatility was the major theme in January as
investors wrestled with the number of potential rate hikes
by the Federal Reserve, historically high inflation, the
pandemic’s grip on the economy, rising geopolitical
tensions, and global supply chain issues. Despite a rebound
towards the end of the month, the S&P 500 Index and
NASDAQ Composite posted their worst monthly losses
since the onset of the pandemic in March 2020. For the
month, the S&P 500 Index lost 5.3%, and recorded its
largest January decline since 2009. With valuations of
growth and technology stocks coming under scrutiny as the
Federal Reserve is set to begin rising interest rates, the
NASDAQ Composite narrowly avoided its worst ever start
to a year as it fell 8.9%. With its underweighting in
technology, the Dow Jones Industrial Average held up
better, but still managed to finish the month lower by 3.3%.
From the Lowry Analysis’ perspective, with
negative longer-term trends of internal
market weakness still apparent, the
intermediate-term body of evidence points
to an extended and likely more painful
recovery process, or worse. It is unlikely that
months of waning trends in Demand and
Supply, Demand intensity, market breadth,
and longer-term momentum are to be
reversed without a significant body of
refreshed bullish evidence. Until then,
holding a defensive investment posture with
meaningfully higher levels of cash is
warranted.
Lowry Intermediate Trend Sell Signal
Lowry’s Buying Power and Selling
Pressure Indexes provide a high-level picture for the trends
of the market, as they measure the action of Buyers and
Sellers. This allows investors to determine if Sellers are
becoming more or less active and if Buyers are starting to
gain or lose enthusiasm for stocks. As the market pullback
unfolded in January, a new intermediate trend sell signal,
Selling Control No. 2, was registered on January 18, when
Lowry’s Selling Pressure Index crossed above the Buying
Power Index. Despite the frequency of signals since July
2021, the latest Selling Control demands a heightened level
of respect after having been preceded by months of
degradation in other key Lowry indicators. From an
intermediate-term perspective, the longer and more
persistent the period of decay into the Lowry sell signal, the
more serious these signals typically are.
L.M. Reports, a CFRA Business. All rights reserved. © 2022
February 8, 2022
With the registration of a Selling Control No. 2 on
January 18 marking the fifth intermediate trend sell signal
since July 2021, a look at the past was needed due to the
near-unprecedented number of oscillations between
signals. In only three other rolling 12-month periods since
1940 have there been as many Lowry Selling/Safety
Controls (5) – the first cluster of signals started in July
1946, the next in August 2011, and the last in late October
2018. The common thread in all cases is that these
whipsawing signals accompanied elevated market
volatility. 1946 started a 38-month, 25% decline in the
DJIA. The first 2011 sell signal closely followed a 16%
DJIA drawdown, and the latter 2018 signal occurred early
in the process of a 19% drawdown in the DJIA. Based on
the past, the current implication is that investors are likely
best served by continuing to raise cash and purse other
defensive strategies while patiently awaiting a return to
favorable conditions.
Lowry’s Measures of Demand Intensity and Internal
Market Weakness
One set of indicators to monitor for evidence of
further deterioration and of a possible reversal of negative
intermediate-term market trends are Lowry’s measures of
Demand intensity and internal market weakness. As
mentioned in numerous L.M. Reports, Lowry’s Percent of
Operating Companies Only (OCO) Stocks within 2% of 52-
Week Highs has been negatively diverging from the large-
cap-weighted market indexes since mid-March 2021. This
demonstrated waning stock participation and Demand
intensity behind breadth. At the same time, the Percent of
OCO Stocks 20% or more Below 52-Week Highs has been
climbing. As of February 4, this measure held a reading of
41.16%. Should this measure exceed the 50% mark, over
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L.M. REPORTS
(a CFRA Business)
the last 20 years, on average, the DJIA typically produces
negative returns for the next 4 months. Of course, bear
markets do not typically abide by this pattern and instead
continue to experience losses over a longer time frame. The
combination reflects trends of diminishing internal market
strength and expanding internal weakness. Historically, a
rise in the Percent of OCO Stocks 20% or more below 52-
Week Highs above 50% acts as a tipping point where the
market is already in either a correction or a bear market.
On the other hand, evidence of a likely sustainable
recovery would need to come from both Lowry’s Percent
of OCO Stocks within 2% of 52-Week Highs and the
Percent of OCO Stocks 20% or more Below 52-Week
Highs. Improving the trustworthiness of a new
intermediate-trend advance would be the former exceeding
its November 5 high of 26.08%, while the latter falling
below its November 8 low of 22.50%. Should these
achievements occur, it would erase long-standing negative
divergences in these indicators, implying a continuation of
the now questionable primary bull market trend. Based on
the charts below, both need to see significant improvement
to exceed their early November 2020 levels as indicated by
the dotted blue lines.
Further Small-Cap Deterioration
Small-Cap breadth continues to nose-dive and on
January 27, the Percent of OCO Small-Caps 20% or more
Below 52-Week Highs surged to 58.30%, its highest
reading since November 2020. The difference between now
and then is that in November 2020, small caps were
L.M. Reports, a CFRA Business. All rights reserved. © 2022
February 8, 2022
climbing out of their pandemic holes, while the opposite is
occurring presently. In addition, the OCO Small-Cap
Advance-Decline Line has been in a significant downtrend
since it peaked on June 8, 2021.
Also of concern is the continued risk aversion, and
strike against market breadth and Demand as small- and
mid-cap relative strength vs. large-cap stocks hit another
new low in early February 2022. This underscores the clear
presence of fragile, timid market conditions. Classically,
ahead of major market tops, weakness first appears in small
caps, gradually moving to mid caps and finally to large
caps.
No Evidence of Supply Exhaustion
Despite the market rebound from its lows in late
January, clear evidence of the exhaustion of Supply has yet
to be observed. That suggests more volatility, if not lower
prices ahead. The traditional Lowry sequence that indicates
the exhaustion of Supply and resurgence of Demand begins
with a 90% Downside Day (NYSE Points Lost/Down
Volume) followed by strong Demand in the form of a 90%
Upside Day or two consecutive 80% Upside Days (NYSE
Points Gained/Up Volume). However, there wasn’t a
NYSE 90% Downside Day to reflect Supply exhaustion, so
the solo 80% Upside Day on January 31 carries no
significance at all. While short-term oversold conditions in
late January set the market up for a rebound, without the
true exhaustion of Supply and return of enthusiastic, broad-
based Demand, probabilities favor further volatility and
downside pressure on an intermediate-term basis.
Conclusion
Until significant evidence appears to the contrary,
the most recent Lowry intermediate trend sell signals
demand respect. This is especially true after months of
weakness in Supply and Demand trends, market breadth,
and longer-term momentum. While the ultimate depth and
duration of the market decline remain unknown, Lowry will
continue to monitor various indicators beneath the surface
of price. Until favorable evidence mounts, investors are
likely best served holding a more defensive stance with
elevated cash levels.
Note: The next report will be published on March 8.
*If you are interested in receiving weekly or daily
updates, please do not hesitate to email us at
lowrysupport@cfraresearch.com for other subscription
options.
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L.M. REPORTS (a CFRA Business) February 8, 2022

Focus on Charts

Lowry’s Net Percent Spread between

Buying Power and Selling Pressure
Indexes has made little effort to change its
course while recently falling to its most
depressed level since early April 2020. As
has been the case since late June 2021, the
Spread remains in a downtrend below its
40-week moving average (WMA) and
back in negative territory below zero.
Historically, this condition is
representative of an increasingly difficult
investing environment accompanied by
high levels of Demand selectivity and
punctuated by bouts of market volatility as
well as sharp drawdowns.

Lowry’s Average Power Rating (APR)

Index provides the average Power Rating
of the more than 3,550 issues in our
database. This gauge of both market
breadth and Demand intensity has
similarly illustrated symptoms of a
significantly weakened bull market for
months. From its peak in mid-June 2021 at
66, the APR Index had fallen 10 points by
January 6, while the S&P 500 Index
advanced another 11%. This negative
divergence demonstrated that a dwindling
number of stocks were participating in the
bull market and even fewer were keeping
pace with the large-cap price indexes.
Coincident with market weakness since
early January, the APR Index plummeted
to a 16-month low of 45 on January 27.

L.M. Reports, a CFRA Business. Page 3

L.M. REPORTS (a CFRA Business) February 8, 2022

ETF Report
Established Leaders: This list reflects the ETFs that demonstrate the strongest pattern of sustained strength. These ETFs
have the highest Power Rating Relative Strength and remain in an intermediate uptrend. Investors should use caution as
market conditions can change, and past strength does not guarantee strong future performance.

Ticker Name Yield Price Velocity Power PR PR Trend PR

(Feb 4) Rating 20 150 Rating Relative
BNO United States Brent Oil Fund ETF 0.0% $25.20 19 99 DMA
97 DMA
90 3 Strength
47
USO United States Oil Fund 0.0% $64.91 18 98 97 89 3 47
XLE SPDR Select Sector Energy 3.4% $68.90 15 98 97 83 3 47
VDE Vanguard Energy ETF 3.4% $95.18 15 98 97 79 3 47
IXC iShares S&P Global Energy Sector 3.3% $33.42 15 98 97 83 3 47
KSA iShares MSCI Saudi Arabia ETF 1.4% $44.72 11 92 97 91 3 47
FENY Fidelity MSCI Energy Index ETF 3.0% $18.63 16 98 96 68 3 46
EMLP First Trust N Amer Enrgy 3.2% $25.59 8 96 96 91 3 46
DBO Invesco DB Oil Fund 0.0% $15.59 17 99 95 85 3 45
IYE iShares Dow Jones US Energy 2.5% $36.46 15 98 95 72 3 45

Rising Stars: This list reflects the ETFs that demonstrate the strongest pattern of improved strength. These ETFs have the
highest Power Rating Momentum. Investors should use caution as market conditions can change and past strength does not
guarantee strong future performance.

Ticker Name Yield Price Velocity Power PR 20 PR 150 Trend PR

(Feb 4) Rating DMA DMA Rating Momentum
UNG United States Natural Gas Fund 0.0% $15.84 29 81 60 68 3 24
ILF iShares S&P Latin America 40 7.8% $25.40 11 70 62 69 3 13
AMJ JPMorgan Alerian MLP Index ETN 6.3% $20.79 15 89 77 70 3 13
XOP SPDR Oil & Gas Exploration and Prod 1.4% $111.92 18 66 54 48 2 10
AMLP ALPS Alerian MLP ETF 7.3% $38.39 16 97 86 74 3 10
DBA Invesco DB Agriculture Fund 0.0% $20.59 7 73 67 62 3 9
FCG First Trust ISE-Revere Natural Gas 1.5% $20.45 19 98 88 79 3 9
FLOT iShares Floating Rate Bond ETF 0.4% $50.72 6 65 60 56 1 8
FXN First Trust Energy AlphaDEX ETF 0.7% $13.90 15 85 76 66 3 8
VCIT Vanguard Intermediate-Term Corp Bnd 2.3% $89.32 6 89 83 81 2 8

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L.M. REPORTS (a CFRA Business) February 8, 2022

Stock Report
Established Leaders: This list reflects large cap stocks that demonstrate the strongest pattern of sustained strength. These
stocks have the highest Power Rating Relative Strength. Investors should use caution as market conditions can change and
past strength does not guarantee strong future performance.
Ticker Name Industry Yield Price Vel Power PR 20 PR 150 Trend PR Relative
(Feb 4) Rating DMA DMA Rating Strength
XOM* Exxon Mobil Oil Ref & Mktg 4.3% $81.41 17 96 97 73 3 47
CVX* Chevron Corp Oil Ref & Mktg 4.2% $135.88 13 98 97 77 3 47
CNP* Centerpoint Energy Utilities-Elec 2.4% $27.89 9 96 96 88 3 46
ADM* Archer Daniels Food 2.1% $75.71 11 98 96 66 3 46
MO* Altria Group Alcohol&Tobacc 7.2% $50.19 12 91 96 84 3 46
MDLZ* Mondelez Intl Food 2.1% $67.02 9 94 96 88 3 46
ABBV AbbVie Inc Pharmaceuticals 4.0% $140.65 14 98 95 92 3 45
NI* Nisource Inc Utilities-Gas 3.2% $29.35 10 97 95 79 3 45
RE* Everest Re Grp Insurance-Prop 2.2% $285.99 9 97 95 84 3 45
COP* ConocoPhillips Oil & Gas Prod 2.0% $91.87 18 97 95 67 3 45
MET* Metlife Inc Insurance-Life 2.8% $68.99 13 98 95 76 3 45
AFL* Aflac Inc Health Prov/Ser 2.5% $64.69 10 99 95 84 3 45
BKR* Baker Hughes Co Oil Services 2.7% $26.59 14 95 95 82 3 45
KO* Coca-Cola Co Food 2.8% $60.96 10 97 95 89 3 45
PEP Pepsico Inc Food 2.5% $172.49 7 91 95 94 3 45
SJM* Smucker J M Co Food 2.9% $136.87 10 94 94 81 3 44
SO* Southern Co Utilities-Elec 3.8% $68.69 8 96 94 79 3 44
FANG* Diamondback Oil & Gas Prod 1.5% $132.06 20 98 94 82 3 44
UNP* Union Pac Corp Transportation 1.9% $242.39 11 93 94 87 3 44
PM* Philip Morris Alcohol&Tobacc 4.8% $103.59 12 95 94 83 3 44
KIM* Kimco Realty REITs 3.2% $23.83 11 94 94 92 3 44
GD* Gen Dynamics Aerospace 2.2% $212.29 9 96 94 90 3 44
CFG* Citizens Finl Banks-Regional 2.9% $54.05 13 95 94 84 3 44
BRKB* Berkshire Hat B Multi-Industry 0.0% $314.99 10 94 94 79 3 44
PFG* Principal Finl Finance 3.4% $74.77 9 92 94 92 3 44
*Indicates New Stock added to the List this Month

Rising Stars: This list reflects the large cap stocks that demonstrate the strongest pattern of improved strength. These
stocks have the highest Power Rating Momentum. Investors should use caution as market conditions can change and past
strength does not guarantee strong future performance.
Ticker Name Industry Yield Price Velocity Power PR 20 PR 150 Trend PR
(Feb 4) Rating DMA DMA Rating Momentum
OXY Occidental Petro Oil & Gas Prod 0.1% $40.80 24 83 64 51 3 25
CF CF Industries Chem-Basic 1.6% $75.06 22 97 83 78 3 20
XLNX Xilinx Electronics 0.7% $209.02 21 85 64 64 -2 19
MA Mastercard Inc Finance 0.5% $382.20 11 81 67 61 3 16
CAG Conagra Brands Food 3.6% $34.73 10 77 70 69 3 15
CTRA Coterra Energy Oil & Gas Prod 2.1% $23.42 14 80 64 59 3 15
WMB Williams Cos Oil & Gas Prod 5.6% $30.58 14 84 72 65 3 15
OKE Oneok Inc Oil & Gas Prod 5.9% $62.89 11 91 77 75 2 15
TTWO Take-Two Electronics 0.0% $175.00 16 72 65 49 2 14
CME CME Group Inc Brokers 1.6% $246.17 10 81 69 68 3 14

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L.M. REPORTS (a CFRA Business) February 8, 2022

Stock Report
High Power Rating / Low P/E Ratio: The issues with the lowest P/E Ratios in our primary universe are ranked according
to a weighting method which favors stocks that have maintained consistently high Power Ratings over the past 4 weeks. The
strongest issues from this list are shown below. The integrity of earnings projections should be independently verified when
using this list. A low 4-week PR suggests that most investors question the company's ability to sustain positive
earnings. Low P/E Ratio stocks can be particularly vulnerable during the late stages of an extended market advance and
during periods of economic downturn.

Ticker Name Industry Yield Price Velocity Power PR 20 PR 150 Trend PR Relative
(Feb 4) Rating DMA DMA Rating Strength
BG Bunge Limited Food 2.1% $ 98.10 15 95 94 85 3 44
PRU* Prudential Insurance-Life 4.1% $ 118.34 11 95 92 90 3 42
SLM SLM Corp Finance 2.2% $ 19.94 11 94 90 88 3 40
ORI* Old Republ Intl Insurance-Prop 3.4% $ 26.24 10 91 73 78 3 23
CMC* Commercial Metl Metals-Steel 1.6% $ 34.62 15 90 84 66 3 34
HUN Huntsman Corp Chem-Basic 2.1% $ 35.81 14 90 92 70 3 42
RDN* Radian Group Insurance-Prop 2.5% $ 22.38 14 90 91 87 3 41
WLL* Whiting Petrol Oil & Gas Prod 0.0% $ 78.44 19 89 87 83 2 37
MFC* Manulife Finl Insurance-Life 4.2% $ 20.72 10 88 79 56 3 29
AVT* Avnet Inc Electronics 2.4% $ 40.10 12 86 82 79 3 32
ET* Energy Transfer Oil & Gas Prod 6.8% $ 10.24 16 86 74 70 3 24
HPQ HP Inc Computer Eqpt 2.7% $ 37.60 17 85 82 82 -1 32
MAIN Main Street Cap Finance 5.9% $ 43.70 9 85 84 87 3 34
CINF* Cincinnati Fin Insurance-Prop 2.3% $ 121.69 9 84 79 80 3 29
SJT* San Juan Basin Oil & Gas Prod 12.1% $ 6.76 28 83 85 80 3 35
*Indicates New Stock added to the List this Month

Strongest High Yield Stocks: The highest yielding stocks are first selected from our primary universe. From that list, the
stocks showing the greatest and the most consistent Power Rating Relative Strength are segregated and shown below. The
stocks are ranked by a weighting method that favors stocks that have maintained consistently high Power Ratings over the
past 4 weeks.

Ticker Name Industry Yield Price Velocity Power PR 20 PR 150 Trend PR Relative
(Feb 4) Rating DMA DMA Rating Strength
MPLX MPLX LP Oil & Gas Prod 8.5% $ 33.32 12 99 98 89 3 48
PAA* Plains All Amer Oil & Gas Prod 6.0% $ 12.02 17 99 91 75 3 41
CQP Cheniere Energy Oil & Gas Prod 5.3% $ 51.28 13 99 96 77 3 46
BNS Bank Nova Scotia Banks-Major 4.3% $ 73.18 11 98 95 84 3 45
CVX* Chevron Corp Oil Ref & Mktg 4.2% $135.88 13 98 97 77 3 47
TU* Telus Corporati Communications 4.3% $ 24.16 8 98 92 88 3 42
ABBV AbbVie Inc Pharmaceuticals 4.0% $140.65 14 98 95 92 3 45
NGG Natl Grid Utilities-Elec 4.7% $ 73.12 10 96 94 87 3 44
XOM* Exxon Mobil Oil Ref & Mktg 4.3% $ 81.41 17 96 97 73 3 47
BCE* BCE Inc Communications 5.4% $ 53.24 7 96 94 92 3 44
PM* Philip Morris Alcohol&Tobacco 4.8% $103.59 12 95 94 83 3 44
PRU* Prudential Finl Insurance-Life 4.1% $118.34 11 95 92 90 3 42
GEL* Genesis Energy Oil & Gas Prod 5.0% $ 11.90 26 94 86 78 3 36
PSX* Phillips 66 Oil Ref & Mktg 4.1% $ 88.84 20 94 88 64 3 38
ENB* Enbridge Inc Oil & Gas Prod 6.3% $ 42.87 12 94 85 84 3 35
*Indicates New Stock added to the List this Month

L.M. Reports, a CFRA Business. Page 6

L.M. REPORTS (a CFRA Business) February 8, 2022

Monthly Statistics

Short
Buying Selling Term Adv Up Vol Up Pts Net New New Dow Jones Ind S&P 500
Power Press. Index ADV DEC Perc Perc Perc Net Adv Volume Net Points Highs Lows Avg Index
3-Jan 170 152 92 828 493 62.7 71.0 39.1 335 1058.21 -484 47 0 36,585.06 4,796.56
4-Jan 172 150 92 908 407 69.0 72.8 56.3 501 1449.74 316 110 11 36,799.65 4,793.54
5-Jan 166 158 91 235 1076 17.9 26.2 4.7 -841 -1556.92 -2563 39 30 36,407.11 4,700.58
6-Jan 168 156 93 764 547 58.3 55.7 55.3 217 318.66 167 76 28 36,236.47 4,696.05
7-Jan 167 157 93 633 674 48.4 63.4 24.4 -41 715.57 -1115 102 24 36,231.66 4,677.03
10-Jan 164 162 93 467 845 35.6 40.9 33.3 -378 -542.14 -560 44 26 36,068.87 4,670.29
11-Jan 167 160 92 950 362 72.4 79.6 82.6 588 1550.49 1115 74 4 36,252.02 4,713.07
12-Jan 169 158 90 603 707 46.0 56.8 45.1 -104 339.99 -122 74 12 36,290.32 4,726.35
13-Jan 168 159 87 699 612 53.3 45.0 30.7 87 -267.36 -865 71 33 36,113.62 4,659.03
14-Jan 169 158 87 593 715 45.3 48.2 32.9 -122 -100.06 -570 102 34 35,911.81 4,662.85
18-Jan 164 165 83 174 1146 13.2 19.0 3.7 -972 -1936.10 -2394 32 67 35,368.47 4,577.11
19-Jan 161 168 82 284 1028 21.6 26.2 15.8 -744 -1394.93 -1198 10 64 35,028.65 4,532.76
20-Jan 158 172 80 197 1118 15.0 17.8 6.5 -921 -1925.52 -1741 3 75 34,715.39 4,482.73
21-Jan 151 178 74 213 1106 16.1 10.0 6.5 -893 -2903.28 -1732 2 102 34,265.37 4,397.94
24-Jan 154 178 73 896 418 68.2 51.2 87.0 478 102.44 1601 4 26 34,364.50 4,410.13
25-Jan 152 182 74 433 874 33.1 43.9 14.4 -441 -416.02 -1764 12 55 34,297.73 4,356.45
26-Jan 148 188 74 304 1016 23.0 29.4 11.4 -712 -1522.93 -1262 14 103 34,168.09 4,349.93
27-Jan 143 194 69 328 981 25.1 30.8 22.8 -653 -1291.82 -988 13 148 34,160.78 4,326.51
28-Jan 146 193 68 1061 247 81.1 78.3 93.1 814 1831.34 2267 21 30 34,725.47 4,431.85
31-Jan 153 188 71 1122 193 85.3 81.2 94.8 929 2129.27 2343 22 1 35,131.86 4,515.55
1-Feb 158 186 71 941 368 71.9 76.5 83.5 573 1746.68 1044 44 3 35,405.24 4,546.54
2-Feb 157 187 71 641 665 49.1 50.6 55.6 -24 38.31 208 52 17 35,629.33 4,589.38
3-Feb 153 191 67 222 1093 16.9 17.8 11.4 -871 -1909.70 -1767 30 51 35,111.16 4,477.44
4-Feb 151 193 68 642 661 49.3 60.7 47.8 -19 692.20 -84 37 39 35,089.74 4,500.53
(There were no 90% Upside or Downside Days in January according to OCO data)

Lowry Research Corporation, A CFRA Business

Michael Zuber, CMT Vincent Randazzo, CMT

Market Analyst Senior Market Analyst

Michael Kahn, CMT

Senior Market Analyst

Copyright warning and notice: It is a violation of federal copyright law to reproduce all or part of this publication or its contents by any means. The Copyright Act
imposes liability of up to $150,000 per issue for such infringement. Information concerning illicit duplication will be gratefully received. Lowry Rese arch Corporation,
a CFRA Business, does not license or authorize reproduction by subscribers or anyone else without specific writte n permission. Past performance is no guarantee of
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L.M. Reports, a CFRA Business. Page 7