by L.A. Little, professional money manager
“As for this long-running bull market, we all know that it will eventually meet its demise. My guess is that this most likely occurs as a result of the ill-advised medications we are taking to alter the effects of the even more ill-advised and long-running policies previously pursued that created all of this unserviceable debt. It is always a matter of timing, though, and as we have seen so many times, it is hard to step back and declare the bull market dead prematurely.
In fact, I write today because it has
reached another juncture where another push higher is highly probable.” Full comment at…
http://www.marketwatch.com/story/failed-test-suggests-move-higher-2012-10-31?dist=tbeforebell
MARKET INTERNALS
The market internals
measures of Breadth and New-Highs vs. New-lows both have now flattened and are no longer pointing down. They’re not pointing up either, but flat is better than down. I am anxiously watching to see if this will be a continuing trend.
MARKET
RECAP
Wednesday the S&P 500 remained
unchanged at 1412 (rounded) and VIX rose about 4-1/2% to 18.60.
The pros continue to buy in
late-day trading and that may indicate more positive days ahead. As I note in the NTSM paragraph below, however; the
news isn’t all good.
NTSM
The
NTSM analysis remained HOLD Wednesday, but the NTSM indicators deteriorated and
could still switch to sell in relatively short order.
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 many 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.
