NEW YORK (CNNMoney) – “The
United States economy slowed in the second quarter amid weak consumer spending,
government cuts and a rise in imports from foreign countries…Gross domestic
product, the broadest measure of the nation's economic health, grew at an
annual rate of 1.5% from April to June, the Commerce Department said
Friday. That's down significantly from a
2% rate in the first three months of the year.”
Full story at…
http://money.cnn.com/2012/07/27/news/economy/us-gdp/index.htm
It was just last year when
every talking head on TV was discussing with great authority that 2% GDP-growth
was “stall speed” and anything below that number was a sign of coming
recession. It didn’t happen last year,
but there has been a steady stream of bad news recently. In spite of the news, the market has been
moving up since the 1st of June and the market is never wrong…in the
short term. I am very cautious longer
term though. Perhaps there is a
recession coming? I’m not an economist
so I won’t guess.
MARKET
Friday
the S&P 500 finished up almost 2% to 1386. The VIX fell about 5% to 16.7
today.
NTSM
The
NTSM analysis was BUY at the close on Friday. Price, Volume and VIX indicators
are all positive on the market.
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
overall. I am underweight my usual
aggressive allocation for stock because there’s a lot of risk now.
