$SPY, $STUDY The market continues
to languish and the old saying “Don’t short a dull market” applies. In spite of
the fact that the Alpha Major Market model remains at a Buy status, with a consensus
Neutral opinion, there are some signs that stocks could be in for more
pullbacks. The DJ Transportation index is in an intermediate term downtrend as
it broke below its April low recently, and each bounce in the past couple of
months was capped by its 50-day moving average. The numbers of stocks reaching
new 52-week highs on both the NYSE and the NASDAQ are still way below those
counts in March, suggesting a narrow market with gains driven by a small number
of stocks, mainly large cap techs. Some near term retracement of stock prices
will not be surprising. For the S&P 500, watch for support near 2100.
The Asset Allocation recommendation remains at 50% Long and 50%
Cash which again is confirmed by the Long rating on 50% of the members of our
Watch Lists which are subjected to similar analytical review.
For your weekend review we have six names on the Watch list this
week as compared to just one last week.
Some may want to read more into this than warranted, this is remains a
stock pickers market and caution is the name of the game.
Have an enjoyable Memorial Day weekend, go fishing or play golf
and enjoy your families, I will be doing all of the above.
No comments:
Post a Comment