October 18, 2014 (weekly comments).
Our current long only allocation is 50% bonds and 50% cash. (Last week's email said 50% bonds and 50% stocks, I meant to say 50/50 bonds/cash.)
The past week exhibited more choppy action, but the trends did not change much.
$SPX, along with other major indices, is attempting to rally, but the long-term momentum is clearly waning. Nevertheless, I still consider large cap stocks to be in a long-term uptrend until proven otherwise. Barring further weakness, I will be buying into the coming rebound rally. From the low on October 15, $SPX has rallied over 4% - not bad! However, I am not convinced that this correction is over, due to the fact that market breadth indicators have not turned bullish yet,
Our current long only allocation is 50% bonds and 50% cash. (Last week's email said 50% bonds and 50% stocks, I meant to say 50/50 bonds/cash.)
The past week exhibited more choppy action, but the trends did not change much.
$SPX, along with other major indices, is attempting to rally, but the long-term momentum is clearly waning. Nevertheless, I still consider large cap stocks to be in a long-term uptrend until proven otherwise. Barring further weakness, I will be buying into the coming rebound rally. From the low on October 15, $SPX has rallied over 4% - not bad! However, I am not convinced that this correction is over, due to the fact that market breadth indicators have not turned bullish yet,
and the price action wasn't strong enough to turn regular indicators bullish
Small Caps performed valiantly, but ultimately it wasn't enough as the Russell 2000 sold off on Friday.
Bonds, especially long dated Treasuries (TLT), had a stellar week, but are now short-term overbought. We may reduce our allocation to bonds next week depending on price action.
Hopes were high for Gold Miners ($GDM/GDX), but I fear that this very minor rebound is failing and we may see yet more of 52 week lows very soon. I will send out a special email if/when gold miners break either up or down.
We continue to be bearish on commodities. Commodities Research Bureau Index ($CRB) lost a little over 1% last week.
Reply to this email with any questions. Best Regards,
Alexander Berger
www.MasterChartsTrading.com
Bonds, especially long dated Treasuries (TLT), had a stellar week, but are now short-term overbought. We may reduce our allocation to bonds next week depending on price action.
Hopes were high for Gold Miners ($GDM/GDX), but I fear that this very minor rebound is failing and we may see yet more of 52 week lows very soon. I will send out a special email if/when gold miners break either up or down.
We continue to be bearish on commodities. Commodities Research Bureau Index ($CRB) lost a little over 1% last week.
Reply to this email with any questions. Best Regards,
Alexander Berger
www.MasterChartsTrading.com
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