Sideways
Market Update
This week’s newsletter will be brief, since not much has changed over the past week. The stock market has been trending sideways for the past few months. Market internals are mixed and not giving any real clues as to the future near term direction of the stock market.
Below is a chart of the Dow Jones Industrial Average. As you can see from the shaded area, the index has been bouncing around under resistance and above support for about three months.
At some point, the stock market will break out of this consolidation. I will be monitoring market internals (Volatility, Market Breadth, Money Flows, etc.) to confirm a break in either direction.
The Bottom Line
Bias: Neutral for Stocks
Stocks are stuck in a range and market indicators are mixed, some being positive for stocks while others are negative.
Client Update
Client accounts are fully invested in mostly lower volatility bond funds, including: High Yield Municipal Bond Funds, Floating Rate Funds, Preferred Security Funds, and High Yield Funds. For the most part, our accounts have trended up with very minor volatility.
On A Personal Note
This past week was pretty eventful for me. I got married on Thursday for the first time at 52 years of age. My patience in waiting for the right one finally paid off. We leave tomorrow evening for our honeymoon in Bora Bora. I will still be connected and working, but I am not sure if I will be sending a newsletter on Monday. I will try to at least publish an abbreviated update.
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.