Rollover
The NYSE Composite Index (chart below) seems to be losing momentum right at its 200-day moving average. Also, the momentum indicators below the chart are starting to rollover.
All breadth indicators shown below have either flattened out or started to decline.
Both market breadth and momentum are suggesting the recent stock market advance is losing steam. There is no way to know the severity that stocks will fall over the near term, just that odds favor some type of pullback.
Client Update
Both Aggressive and Conservative accounts are invested in Bond Funds, with about 35% in Cash. Our bond holdings consist of High Yield Municipal Bond Funds, Investment Grade Corporate Bond Fund (LQD), and a small Treasury (TLT) holding.
Once market momentum and breadth turn back up I will look to move to a more aggressive allocation.
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.