Still Sideways
Market Update
Nothing has changed over the past week. The market has been churning sideways for the past five weeks. Since July 20, 2016 the S&P 500 has only advanced .50%.
Since market internals have not changed, I am not re-posting my charts from last week. You can view last week’s charts by Clicking Here.
The Bottom Line
Bias: Positive for Stocks
- Stock market price action is positive and will remain so as long as prices remain above the June 2016 lows.
- Market internals suggest a positive environment for stocks over the longer term.
- Some shorter-term market internals are flashing warning signs that we could see some market weakness over the near term. Possibly in the form of a market pullback. However, any short- term weakness has not yet been confirmed.
- Stock market momentum has not yet signaled a change in trend, the direction of the market is still up, and price action is still positive. So any warning sign that we are seeing in shorter-term market internals are just a signal to be cautious. Until prices rollover and momentum indicators turn negative, short-term price action remains positive.
Client Update
Client accounts are between 80% to 100% invested in lower volatility funds.
We will be looking to add funds that we have identified as providing attractive risk-adjusted return characteristics once short-term internals turn positive.
For the most part, our accounts have trended up with very minor volatility this year.
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Have a great day!!
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.