The S&P 500 continued its’ bullish stature into and through last week. After the closing bell on Friday afternoon, the S&P 500 finished up .86% for the week. The bulls were able to create a new high in the S&P 500. They didn’t necessarily do it in a forceful way, but they are headed in the right direction.
The bear ‘o’ meter remains positive. That means a ‘risk on’ stance when it comes to the US equities markets. The momentum of the S&P 500 vs. Short-Term Treasuries vs. the All-World (EX-USA) Index remains in the favor of the S&P 500. This simply means we want to continue focusing on the US equity markets over the others.
Last week, almost all US Equities we are in broke to recent highs. The only exception is the Transportation Index. Commodities were up, but still remain in their respective trading ranges. The indexes that look the weakest are Treasuries and the International position. No stops were adjusted up leaving the approximate overall risk of the portfolios about the same.
This week, the theme is to focus on the US equities markets. We are looking to add the Technology Sector to the mix assuming price action looks favorable. The current positions are relatively far from any stop losses and with the exception of the International Value position. The good news is that it has at least held support and could be in the midst of a bounce…however, that is a little too early to call.
This month’s book is “Self-Discipline: How to Develop the Mindset, Mental Toughness and Self-Discipline of a U.S. Navy Seal,” by Dominic Mann. Looking forward to another exciting week in the markets! Have a great week, we’ll be watching closely!
Adam Straseske, CMT
PS – Ask me for a copy of my book, “Home Run Financial Planning: Cover All Your Key Financial Bases and Align Your Finances with Your Goals and Values.” Just let me know…and I’ll make sure to get a copy out to you!