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Hello everyone, not much has changed since our last update. We are still 55% invested in the market (45% of the portfolio is safely in cash), obviously no margin use these days.
Although we are still flirting with 52 week highs, the market continues to flash very conflicting messages. For the week, the market basically broke even from a performance perspective, so we are holding up which is good. Volume continues to be a problem on the up days, which is nothing more than a warning signal, low volume by itself is not an excuse to exit the market, but rather just something to continue to monitor along with other signs of potential weakness. We just do not see much strength behind the up days.
Leading stocks also are sending a mixed bag, while some are acting well, most have broken and are basing which most times would be considered productive, but with the weaker stocks leading the stronger ones, caution is certainly warranted.
Market sentiment is again at all time highs and although we do not use these indicators in our trading decisions here at Resnn, this level of euphoria is certainly not sustainable over the long haul. I have spoken about this in previous emails, so I won’t bore you further on this topic.
For now, we stay invested with slightly more than half our portfolio at work and the other half sitting safely on the sidelines … a bit of caution goes a long ways.
Hope you have a wonderful and safe weekend.
Resnn Investments, LLC