Market Update
Not much new to talk about since last week. Stocks still stuck in same range they have been in all year. There is a growing concern about weakening global growth and the affects that it can possible have on our economy.
One of the things that I will be watching this week is how the current market leading sectors (health care, consumer discretionary, and financials) perform. These are the sectors that have been propping up this market all year, but this past week they underperformed. If they start to break down in the coming weeks, that could be a catalyst for market momentum to move to the downside.
Client Update
Currently, we have most client accounts invested primarily in money market funds. Money market funds are safe investments that do not fluctuate in price and are a good place to park our money while we wait for stock and bond market conditions to improve.
Given that the market has been bouncing around in a sideways pattern, not providing any good longer-term trends, I am looking to use my volatility indicators to take advantage of short-term oversold conditions. I will look to purchase a stock fund after the market falls an extreme amount and the odds are high that it will provide a short-term gain. This is considered a swing trade where we would usually only hold the position for 2 to 5 days.