Four In A Row
Stocks advanced again this past week making it four weeks in a row of positive returns. This advance has been strong, but it is still not clear if the recent rally in stocks is the beginning of a new long-term uptrend or just a counter-trend rally that is destined to fail.
Below is a chart of the NYSE Composite Index. You will notice that the index is still sitting right below its downtrend line. At this point the long-term trend of the market is still down.
As I mentioned in last week’s newsletter, the fact that stocks have continued to advance even though the market is substantially overbought is a bullish signal. Breadth Indicators are still trending up and that is positive for stocks as well.
On the other hand, there is considerable resistance overhead, the long-term trend is still down and stocks are overbought. Stocks are short-term extended to the upside and susceptible to a pullback.
There is considerable economic data coming out this week in addition to a Fed announcement on Wednesday. There is enough news this week to substantially move the market one way or the other.
Client Update
Both Aggressive and Conservative accounts are conservatively invested in Bond Funds, with about 30% in Cash.
We Can Help
“Don’t wait until you’re in a crisis to come up with a crisis plan.” – Phil McGraw
Craig Thompson, ChFC
Email: [email protected]
Phone: 619-709-0066
About Asset Solutions
Asset Solutions Advisory Services, Inc. is a Fee-Only Registered Investment Advisor specializing in helping the needs of retirees, those nearing retirement, and other investors with similar investment goals.
We are an “active” money manager that looks to generate steady long-term returns, while protecting clients from large losses during major market corrections.