$SPY The rule of the day is don’t fight the tape or the central bankers. There
aren’t many bears left as the Investors Intelligence’s advisor sentiment
readings showed bears dropped to 13.3%, the lowest level since 1987. But there
are still many investors in the correction camp. There is still sideline money
waiting to buy any pullbacks. So the uptrend is likely to stay intact at least
in the near term.
With that said,
although stocks posted a record close Friday, the 10- year treasury yield,
which dipped in the morning after the payroll data, actually settled the day
higher. What direction will the Fed take following this data; we’ll have to
wait for a couple of weeks to find out when the FOMC holds its next meeting in
mid-September.
This coming week I have
some cleaning up to do in the portfolio, there are now three names with
downgraded opinions and will need to be replaced. The three in questions are $MU, $NFX, $XEC. Candidates for replacement will come from the
Watch List which is part of the Alpha One Model Portfolio and can be reviewed by clicking the above link for the Alpha One Model Portfolio.
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