“Stay long equities, short commodities, says Deutsche Bank’s Chadha”…In a note published Tuesday, ‘We stay the course in our asset allocation which remains long equities, credit and the dollar; short duration, cash and commodities. We do not expect a sustained pullback in risk assets in the face of reasonable negative catalysts until positioning gets much more extended.” Story at…
“Bank of Japan’s Governor Haruhiko Kuroda will kick things off on Wednesday with a decision and press conference where no change and lots of market-soothing comments should be made….Wednesday also brings us US Fed Chair Ben Bernanke testifying before Congress…Later that day we get the minutes from the last US Fed meeting, which will be analyzed, interpreted, misinterpreted, and fretted about until the next time we get meeting minutes.” Story at… http://www.minyanville.com/special-features/wall-of-worry/articles/The-Central-Banks-Speak-The-Markets/5/21/2013/id/49933#ixzz2TwVy8oVH
Tuesday, the S&P 500 closed up 0.2% to 1669 (rounded).
SENTIMENT was 66%-bulls at the close yesterday for the 5-dMA of Guggenheim/Rydex Funds I track. It doesn’t get much more extreme than that. The PRICE indicator is currently positive, because moves have been bigger to the upside than the downside. Other indicators are neutral.
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)