This is going to be a quick one
this time since … yet again not much has changed our cautious outlook since
last week’s alert.
The Nasdaq and smaller caps are
still in the doldrums, ALTHOUGH the Nasdaq is respecting its’ most recent low
that was made about a month ago. The smaller cap stocks are not looking
as good though … making a new low yesterday. Both indexes are clearly
still struggling.
The larger caps are still
holding up well. Although the S&P has yet to make any money since
late February, it also hasn’t lost any. The Dow tells a similar
story, not making a dime for 2014, but also not losing any either. This
lack of selling on the larger caps is certainly a good sign so far, we see lots
of larger issues consolidating the gains of 2013 and doing what is called ‘base
building’ which is a healthy ‘time-out’ for the market.
Any time the market goes
sideways for long periods of time is generally a sign that rebuilding is
occurring and usually that leads to more upside for the market, so although I
don’t think the market is quite done repairing itself, I do like how it is
acting these days.
As I’ve mentioned in the past,
we certainly need the smaller caps and leading stocks to participate in any
upcoming rally attempt and so far they are not cooperating.
For now, we continue to wait
and watch for signs of strength in the coming week. We might have already put
in the bottom of this correction OR are close to a bottom at this time, but
acting cautiously still is the best course of action.
Hope you have a wonderful and safe weekend.
Respectfully,
Randall Mauro
Resnn Investments, LLC
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