We still believe that the current rotation away from old leadership into value-oriented names is a real theme for the next few months and possibly years.
Stocks have formed a low, and we expect a yearend rally. It looks as if we are set up for our yearend rally scenario, although we are seeing more weakness than expected. However, internals are weakening.
Stocks have formed a low, and we expect a yearend rally. It looks as if we are set up for our yearend rally scenario. Internals are still weak and a concern, but the price pattern has improved.
Stocks look to have put in the first part of a low at the end of the second quarter, as we expected. Now, it looks as if we are retesting, and should chop around and base in this area.
We still believe that the current rotation away from higher P/E names into Value oriented names is a real theme for the next few months and possibly years.
The current market weakness is expected and may not be over. We believe that the current rotation away from higher PE names into Value oriented names is a real theme for the next few months and possibly years
Internals continue to suggest a defensive stance as we move into the end of the quarter. We will look at our quarterly indicators then, to determine if a more aggressive stance is warranted.
This current market weakness is as we have expected. We made a defensive shift in allocations at the end of 2021. Internals continue to suggest a defensive stance as we move into March.
The yearend rally progressed on schedule but may be ending. We will make a defensive shift in allocations. Short-term indicators are weakening, and longer-term indicators are overbought, suggesting a defensive stance as we move into 2022.
The yearend rally is underway. Our positioning looks appropriate now. Short-term indicators are slightly overbought, and could see a pause, and while longer-term indicators are still overbought, this should not affect trading into the end of 2021.
Short-term indicators are all oversold enough for a one to two month advance, and while longer-term indicators are still overbought, this should not affect trading into the end of 2021.
We are still looking at the possibility of a fall correction, so we make no changes at this time. Since indicators are not suggesting an end to the bull market it is more appropriate to use weakness to add to attractive groups and sectors than to make changes we would quickly reverse.
We replace NKE with this stock as that broke out on a gap and looks tired. MCD is a high-level consolidation that should hold in a correction and could test 252 on a rally, where it goes to a hold.
This month, we will move XLRE to Equal Weight, and XLU to Under Weight. XLRE is starting to trade in line with a strong accumulation model and should experience a summer rally. XLU, as a defensive sector, may lag this summer.
