“The world's top mutual
fund managers say the U.S. stock rally is about to come to an end. - More than
half, or 58%, of 253 fund managers surveyed by Bank of America Merrill Lynch
say stocks are the most overvalued investments in the world. That's up from 51%
in an August survey.”
Hmmmm…That might be a bullish
indicator! My sentiment indicator is 54%
bullish. It looks like the Fund Managers
are only 42% bullish at best. I think the negatism gives this rally more legs.
LAWRENCE MCDONALD - "There is a really deadly hedge fund that is becoming a threat to the world, and that hedge fund is the Federal Reserve." The risk-reward from the latest Fed’s action is “atrocious.”
http://video.cnbc.com/gallery/?video=3000116448&play=1#
BOB WOODWARD – Bob Woodward has a new book out on the
subject of last year's debt negotiations. He said, “Everyone in this
country is in peril because the politicians can’t solve these problems.”
MARKET
RECAP
Wednesday the S&P 500
finished UP 0.12% to 1461 (rounded). VIX
fell 2% to 13.88.
VIX
has really been falling quite a lot recently.
Perhaps it’s due to VIX expiration today. I don’t know – I do know I like a falling VIX. In general it signals a rising S&P 500.
NTSM
The
NTSM analysis remained BUY Wednesday. Price, Volume, and VIX indicators are all
positive. Sentiment is neutral.Market internals are improving. Maybe I’ll be able to add some more to my stock portfolio after all. We’ll see.
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 currently have a 50%
stock allocation overall. For my age,
that is what most advisors recommend as a fully invested position, however, I
am normally much more aggressive. I have
less invested in stocks now because there’s a lot of risk.
