Putting on the Armor for a defensive stance: 'Therefore, keep watch...'

"Therefore keep watch, because you do not know on what day your Lord will come... So you also must be ready" by "Putting on the Armor of God" - Matthew/Ephesians

An April Market Recovery

How is it possible for the stock market to recover so quickly in the face of high gas prices?

Good question. My experience has taught me that of the many leading indicators of market behavior, the one that has been somewhat consistent is the level of what we pay at the pump. Exceeding $3.50 dollars per gallon (it used to be 2.50 and then 3.00) will cause some disruption of a positive market flow. Rates are rising on fear of inflation and causing bond prices to suffer. And we are seeing swings in volatility measures that often speaks of market correction. Therefore, we have remained consistently cautious and increasingly defensive in nature with our portfolio positioning. And until we see some relief in the price of gas, we currently don't see the upside as very attractive.

So how did this market recover so quickly in April? Looking at the technicals (under the hood), certain areas of the technology sector led the way.  But a broad based rally that usually becomes sustainable has been missing. And our belief is this may lead to the volatility we have continued to expect for 2026. We plan to keep this diligence throughout the summer based on what unfolds from our indicators.

Putting on the Armor

During periods of market behavior such as this, while also being attentive to the headline event risks, we continue to find 'bottom up' stock and ETF ideas that we feel can perform during a tough 'top down' market. We have remained invested in a number of equity areas while keeping cash available for ideas and building our fixed income holdings for longer term needs. Market periods such as what we are expecting can be frustrating for an investor. Yet, we remind you that this is when we stay diligent and build our defense for working to avoid a bigger decline while remaining vigilant in order to capture gains should they prevail. From our scriptural context, refer to Ephesians Chapter 6 - putting on the Armor of God.

Being Ready

No one knows what is next. Just as we are taught in Matthew 24:42 (caption in the picture above), we at EWM are on our guard and preparing for the next few months of uncertainty by meeting it with being ready. There are times when the signals give support to an 'all clear' signal. Until we see that in our technical data, we are being cautious and staying alert to make adjustments to the portfolio holdings on your behalf.

Author: Steve Economopoulos

Published: 5/5/2026

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