$SPY, $STUDY, The technical condition of the market was mixed last
week while the overall direction of the Alpha Major Market Model remains
unchanged. The Technical indicators firmed
but there was additional weakness in the Strength indicators resulting in Buy
recommendations for all four members of the group along with Neutral Opinions.
The Asset Allocation recommendation remains at 50% Long and 50% Cash which is
confirmed by the 43.6% Long rating on the sum of the members of our Watch
Lists.
The past week we closed both ROST and ICLR positions on opinion
downgrades and had three day trades in our Option strategy resulting in
approximately a 20% return on the capital employed for day trading.
The major averages inched higher for the week stretching the upper
boundary of the trading ranges. The S&P 500 recorded new all-time highs on
both Thursday and Friday. The DJIA came within 16 points of its record close.
Several of the indexes successfully tested their 50-day moving averages during
the week and the Philadelphia Semiconductor Index reclaimed its 50-day moving
average for the first time since mid-April confirming strength in technology shares.
That bodes well for the broader market going forward.
Friday closed the week with a slow but steady session with VIX
(12.38) finishing lower. This favors the bulls as investors become more bullish
but yet not too complacent. However, it isn’t probably going to be a quick and
easy breakout for stocks. Many technical indicators of the major indexes
remained relatively neutral, suggesting more sideway grinds.
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