The S&P 500 ended up finishing the week up 1.2%. The beginning of the week started off very slow for the bulls, the bears really made it look like they had a chance to pull the S&P 500 lower, but they could not. Each time the index went down, there were buyers ready to step in and push price higher once again. The index did not surpass the high of last week, but they are certainly pretty close to doing so.
At the end of the month we get the final number for our monthly readings. Long-term momentum of the S&P 500 remains positive while the MSCI All World (ex-USA) index momentum remains negative. When it comes to US Large Cap vs. US Small Cap, large caps take the win along with US Growth when US Growth and US Value are measured.
No changes were made to the positions in the portfolio this past week. All things were up except for the International Government Inflation-Protected position. The positions still are trending nicely within their respective bull channels. This is the type of action we’d like to see. As far as adding new things this week, we had a plethora of buy signals. Now, it doesn’t mean we want to take them all, but we can certainly add a little of risk to the table. The position we are looking at is a Brazilian small cap ETF. It is sitting right on top of support and would be the second buy trigger if it is issued.
It should be an interesting week with the S&P 500 getting very close to making another recent high so we’ll see if the bulls can pull it off. The risk is still relatively large when looking at the current price and the price of a reasonable stop so the bulls certainly could panic quickly as they buy in at these levels. Lastly, with regards to the current positions, all of the stops are relatively far so I doubt we’ll see any stop levels hit. Have a great week!
Adam Straseske, CMT