The market had a productive week. Although it
basically ended flat to slightly down for the week, volatility seems to be
calming down and the major indexes have regained important levels and seem to
be holding above them with decent support.
We are still getting some strong intraday moves, but
significantly less than we have had since the start of the year. All the
major indexes are still in the red for the year (except the Nasdaq, which is
showing a slight gain), but if this stabilization continues, I would assume the
general market will start making gains very soon.
Last week, I expressed my concern that the market recovered
a bit too quickly, but with this week’s sideways consolidation I am less
concerned about the quick drop and subsequent rise from the past few
weeks. If the market is being supported by buyers at this level, then we
have little to be concerned about moving forward.
I really don’t have much concern at this stage. If I
were forced to name something that isn’t ideal, I would say that the smaller
companies are less favored right now than the midsized … which just implies
that the large institutional investors are putting their money in larger (i.e.
more stable) positions. Given the large run up last year, this doesn’t
surprise me that some caution is occurring.
All seems good in the market, given its’ protective nature
our flagship strategy just needs a little more time for the volatility to calm
more before we get in. I would be surprised if we are not fully invested
in the market before the middle of next week. If things progress, we will
most likely be entering in our “the One” strategy in a day or two. Our
other two strategies entered two weeks ago and are sitting on a bit of
profit, but nothing significant as of yet.
For now, we hold and wait for the market to continue its’
consolidation and hopefully its’ previous uptrend.
Hope you have a wonderful and safe weekend.
Respectfully,
Randall Mauro
Resnn Investments, LLC
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