AUM Navigator Weekly Report

Week of Feb 27th, 2025

Market Status: Bullish Power Mode (Trend Change Alert) 

• Long-Term Trend: Up

• Short-Term Trend: Sideways

• Momentum: Moderate down

• Price Action: Moderately down

Market Update: Key Levels and Strategic Moves

The market is finally showing movement, and we’re seeing a reaction off the 6150 level, leading to a solid move downward. Right now, we’re testing support at the 100 SMA and the 50% level of the regression channel—a critical zone to watch. If buyers step in, we could hold this level, but if selling pressure continues, we’re looking at a projected retracement to the 5700-5800 range.

This upcoming level is particularly important because it marks the third touch—a level where we often see a reaction (potential short-term rally). Historically, it’s the fourth touch that tends to break, so a short-term bounce here wouldn’t be surprising. However, any rally could be short-lived, making this a crucial moment to manage risk appropriately.

Portfolio Strategy: Protecting AUM While Positioning for Growth

Now is the time to ensure a portion of client assets are allocated to true fixed income—not risk-fixed income. We’re talking about low-volatility instruments yielding 3-5%, designed to hold steady through 20-40% market downturns. This strategy protects capital while keeping clients confident in your management.

Once this correction runs its course, we’ll rotate back into equities for a high-alpha move, capturing the upside while maintaining long-term client retention. Smart AUM management and tax strategy aren’t just about returns—they’re about building trust and keeping clients for the long haul.

Stay sharp and be ready for the next move.