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The S&P 500 once again has advanced to new highs. It finished up 1.57% after the doors were closed on Friday. This weekend, I was on a camping trip with the Cub Scouts. I couldn’t help but overhear another couple of parents talking about being worried about the market highs. It reminded me that the market crawls a wall of worry and as you know, worrying is no way to live. So, let’s not worry and just pay attention to what the market is whispering, and act accordingly.
Bull / Bear Market
The S&P 500 and MSCI All-World (ex-USA) indices both continue to greatly outpace treasuries. The S&P 500 is slightly underperforming of the two. In this case, the market is whispering to us that there is no need to worry about being caught in a bear market and that the attention should be on International markets. That is what we will continue to do as you can see from all of our Index Swings.
The list of indices for swing plays are as follows: Canada / United Kingdom / Japan / Oil / Extended Treasury / Australia / Brazil / International Government Inflation-Protection Bonds
Most of the Index Swings finished up for the week with an exception of a few. The few that finished down were only down modestly. By far, the weakest index of the above is Extended Treasuries. It is close to the second purchase range, but we are going to have to get a buy signal before taking any action. There was not a buy signal last week. The other remaining indices are pretty darn far from any stops or second purchase ranges.
The stock market is hot right now. I surely don’t know how long it will last, but as it stands now, the bulls are taking the bears to the whipping shed. Any pull back we see in price will probably be bought and until we see at least a pull back and test of the high from that pull back, the bulls will more than likely buy into weakness. It should be an interesting week and we will watch closely to see if the bulls can continue the advance starting Tuesday!
The Education/Gratitude Book Club
The book we are focused on this month is Viktor Frankl’s “Man’s Search for Meaning.” It is a GREAT book. It is easy to read and it is a book that has many lessons. One of the biggest things I’ve gotten from reading this book is the powerful reason of “why.” Without the “why” in life, it can become meaningless and unfulfilling in a quick hurry. Furthermore, the “why” is what drives us past those moments when the situation appears to be desolate. Well, since it is finished a couple weeks before the end of the month, I’m playing around with the idea of picking one out for next week that we can do in short order before the next month. I’ll look this week and see if I can find something. Have a great week!
Adam Straseske, CMT
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