Investing Experts Follow signals, don't chase price - JD Henning
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Oct 8, 2025 JD Henning, operator of the Value and Momentum Breakouts group on Seeking Alpha, dives deep into market signals versus guessing in trading. He discusses why focusing on data-driven momentum gauges can lead to strong returns, especially in gold and biotech sectors. JD reveals his preference for ETFs over single stocks for diversification and highlights major opportunities in beaten-down healthcare. He also shares bullish insights on crypto and precious metals amidst a weaker dollar, providing valuable advice for retail investors.
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Follow Market Signals First
- Follow quantitative momentum gauges rather than trying to predict the future.
- Trade only while the market signals are positive and exit when gauges turn negative.
Early-Year Bear Bet Paid Off
- At the start of the year JD loaded up on bear funds and made over 20% to the April lows.
- His portfolios recovered strongly after following signals from the April lows.
Volatility Boosts Timing Value
- 2024 shows unusually high daily volatility with many ±2% swings, which favors timing indicators.
- Higher short-term volatility increases the usefulness of momentum and sector gauges.
