Tuesday the S&P 500 was up less than a point to finish basically unchanged at 1428 (rounded). VIX was up about 2.4% to 15.95.
The markets were up a lot
until Bernanke spoke. CNBC wrote: “The
Federal Reserve met market expectations Wednesday with another round of easing,
this time with a pledge to keep interest rates low until unemployment falls
below 6.5 percent and inflation tops 2.5 percent.” Full story from CNBC at http://www.cnbc.com/id/100306053
NTSM
The NTSM analysis remained HOLD Wednesday. All NTSM indicators are neutral, but are now
leaning toward a buy.
The S&P 500 has seen only 2-down days in
the last 10. Conversely, sentiment has
fallen to 47%-bulls about where it was at the recent 1353 low. There hasn’t been much change in market
internals – see yesterday’s post.
I am slightly bullish in the short-term. Longer term, I tend to be more pessimistic. I have been wrong on my short position; but I
have no problem being out of the market with longer term money. This is not the time to be a hero by being
overly invested.
MY INVESTED POSITION
Based on the SELL signal, 7 November 2012, I
moved out of the stock market at 1377 on the S&P 500. Because of the extreme negativity I have
noted from Hussman and others, I am currently invested in a range of near 15%
invested in stocks and I am still holding short positions.
