#040 Tom Thornton On Why We Might See True Capitulation In The Markets In 2023

Tom Thornton (@TommyThornton), founder and president of Hedge Fund Telemetry, has had an incredible year amid market turbulence. The former portfolio manager, senior trader, and technical analyst has delivered returns of 52% so far in 2022.

In this episode, Tom, who focuses on sentiment indicators, explains why markets are nervous and that we haven’t seen a true market capitulation yet. He predicts that in 2023 we might see capitulation as the retail investor starts to give up.

Elsewhere, Tom weighs in on his investment process and approach. He also shares his thoughts on the Fed’s rate hikes and why he doesn’t expect any rate cuts next year. He also details his short on Tesla. 

Tom has written a daily market note for a select group of hedge fund managers for years and now has offered it for all investors with Hedge Fund Telemetry, which features market sentiment, macro daily insights utilizing DeMark Indicators, sector rotations, and long and short trade ideas with professional commentary and more.

0:00 Approach to markets

4:47 Sizing positions

11:13 Time horizons

13:12 The market is nervous

16:50 Capitulation

18:26 No safe place to hide

22:50 The Fed

27:27 Market’s Fed dependency

38:48 Elon Musk and Tesla

48:08 Hedge Fund Telemetry