The Fred Report - Sector Review March 2012

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Since the last sector review, the markets have arrived at the low end of our target range of 140 – 143 on SPY. Anecdotal sentiment is quite bullish, but the actual numbers remain favorable - our Investor’s Intelligence %Bears model remains elevated. US Small Cap stocks have made all time highs. European concerns have receded, and our expectation that these will be resolved favorably is becoming consensus view. Indicators on European stock indexes and currencies have favorable patterns, but US markets continue to look more attractive from a technical point of view. Still, this is a good point to tighten up stops, sell underperforming holdings and review positions.


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