FRANKFURT (MarketWatch)
Europe stocks fall; Spain plunges on debt worries:
“European stocks posted
broad-based losses Friday, with Spanish equities plunging as government bond
yields soared on renewed fears the country could be forced to seek a
full-fledged sovereign bailout due to its debt burden… “The news out of Spain
prompted investors to focus their attention away from the QE3-or-no-QE3
argument for some good old risk-off trading,” said Neal Gilbert, strategist at
GFT…”http://www.marketwatch.com/story/europe-markets-struggle-to-maintain-momentum-2012-07-20
MARKET
Friday
the S&P 500 finished down 1% to 1363.
The VIX was up 5% to 16.27.
The
S&P 500 is reasonably close to its lower trend line so maybe I’ll get
another chance on Monday to take a long trading position. I’ve been too busy with visitors to do any
trading recently. I still think we go up
from here just based on the NTSM indicators which have remained BUY 9-of the
last 11-trading days. Market internals
look good too. I am not super optimistic
though; with so much bad news this market could turn quickly. The S&P is only up about 1% over the last
11-trading days so that’s not very encouraging either.
NTSM
The NTSM analysis remains
BUY Friday at the close.
MY INVESTED POSITION
Based on the BUY signal, 6
July, I moved back into the market on 9 July (after the weekend) at S&P 500
1352. I now have a 50% stock
allocation. I am underweight my usual
aggressive allocation for stock because there’s a lot of risk now.
