The Bottom Line
Bias:
- The stock market is in an uptrend on both a short and long-term basis.
- While the summer months are typically bad for stocks and sentiment is currently negative, the weight of the evidence is Bullish for the stock market.
Client Update
Client accounts are fully invested.
Technical Analysis
The stock market has been trending higher with a series of higher-highs and higher-lows. The S&P 500 just advanced above the highs set in June. If this trend is going to continue, I would expect price not to fall too much lower than its nearest level of support. Price action on both a short and long-term basis is Bullish!
Investors have been displaying a propensity to take on risk which is bullish for the entire stock market. Below is a chart of the relative strength of a Consumer Discretionary ETF (XLY) versus a Consumer Staples ETF (XLP). When the line in the lower panel is rising, this indicates that investors favor the riskier Discretionary stocks over the more conservative Staples stocks.
International markets continue to advance displaying global stock market strength.
The bottom line is the stock market is in an uptrend on both a short and long-term basis. Market breadth is positive and most sectors have hit new 52-week highs recently. When markets are in uptrends and reaching new highs, this is bullish!!
On a Personal Note
If you have any questions, please feel free to contact me.
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.
Asset Solutions is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.