About 7-billion dollars flowed into mutual funds during the 2-week period ending 17 July. This is just another indication of the topping process. Previously, money was being withdrawn. The Mutual fund players have had a history of putting money into the long-term US equity funds at or near the top. Press release at…
http://www.ici.org/research/stats/flows/flows_07_24_13
THE MARKET’S JUST TIRED – PRO (CNBC)
”Stocks in the near-term don’t offer enough potential
gains to be buying, Stephen Weiss of Short Hills Capital says.” Video at…http://video.cnbc.com/gallery/?video=3000186087&__source=yahoo%7Cheadline%7Cquote%7Cvideo%7C&par=yahoo
HUSSMAN TWEETS (Mike Shedlock)
“Institutions have never dumped more stock onto retail
investors as they have in the past 4 weeks.” Short post at…http://globaleconomicanalysis.blogspot.com/
I have seen a number of posts about “distribution” days recently. If it is true, then the big boys want the poor saps to take stock off their hands. That is not a good sign.
MARKET REPORT
Friday, the S&P 500 was up 0.1% to 1692 (rounded).
VIX was down 2% to 12.72. Friday, the S&P 500 was up 0.1% to 1692 (rounded).
Repeating…VIX still is not confirming a down-turn. Options players aren’t concerned.
MARKET INTERNALS (NYSE DATA)
Breadth was negative with only 47% of stocks
advancing today on a slightly up day.
The S&P 500 chart has been relatively flat over the last 5-days
while breadth has been steadily declining, so there is definitely divergence. This simply means that the number of stocks advancing
has decreased over that time frame, just not ones that influence the S&P
500 index.
There were less than 100 new-highs today so
new-highs continue to decline; 4-days ago there were over 300-new-highs. Today, there were fewer new-lows so the
spread between new-highs and new-lows improved a little on the day. Still, on the whole, market internals suggest
further down for the S&P 500.
NTSM
Friday, the overall NTSM analysis remained
HOLD at the close.
MY INVESTED POSITION
I remain about 20% invested in stocks as of 5 March (S&P 500
-1540). 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%!)
I have no problems leaving 20% or 30% invested. If the market is cut in half (worst case) I’d
only lose 10%-15% of my investments. It
also hedges the bet if I am wrong since I will have some invested if the market
goes up. No system is perfect.
