$SPY We finished off the past week on the side lines waiting for
direction to be provided by earnings releases in hopes that some leadership for
the market would be forth coming. We should
have gone fishing. We closed both $FFIV
and $CP this week on Opinion Downgrades and traded SPY Option’s on four days as
a hedging strategy for the portfolio.
Overall the Alpha One Model Portfolio had a very good week albeit a bit
boring. Not much new has surfaced on the
Watch List and the market models remain strongly Bearish.
Although the three major indexes finished with nice gains Friday,
the Russell 2000 index, which had outperformed during the past three sessions,
ran into resistance near 1100 and finished in the red. It indicated that the
bounce was still an oversold bounce and stocks are not out of the woods yet. The
S&P 500 will most likely run into resistance near 1900, its 10-day moving
average, followed by 1906, its 200- day moving average. Earnings have been
mixed so far and haven’t been able to give the overall market a clear
direction. Expect the market to remain choppy. Stay nimble and don’t be afraid
to take profits. If you are working on establishing long term positions, stay
cautious and go slow.
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