$SPY The major indexes continued
to go sideways this past week as they consolidated their gains from the October
bottom. Stocks are doing what they are supposed to do after some big gains. For
the week the S & P 500 added 38 basis points to its year-to-date returns of
10.36%. The Alpha One Model added 543
basis points over the same period.
The four major index’s which
the Major Market Model tracks are rated Buy with Bullish Opinions however they
all remain in overbought territory and may see further short term pull backs. Small caps lagged again
Friday which is probably one of the reasons keeping buyers on the sideline. In
addition, investor sentiment is increasingly getting more bullish as all we
hear in the media was how the stocks would continue to rise into year end. When
there are too many bulls, much of the gain may be already been priced in.
The model portfolio is
currently at 79.3% Long – 20.7% Cash, while the recommended allocation is 87.5% Long and 12.5% Cash. I
will be watching the following in the coming week for possible additions to the
model portfolio, $AMAT, $FFIV, $MJN, $MMP and $ZTS while watching for an
appropriate exit point for the current holding $ICLR which is longer on the
master list.
FactSet Street Account Summary - US Weekly Recap: Dow +0.35%, S&P +0.39%, Nasdaq +1.21%, Russell +0.04%
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