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.
XLB is a breakout above the 2017 high. The long-term price pattern was less robust than other strong sectors because it is a newer breakout out but has big potential, now being realized.
This month, we will stick with our sector weightings. As always, stocks in this report come from the constituents of the Sector ETF. The last stock changes are performing well and position us for 2021.
This month, we make some sector changes to position ourselves for 2021. Our changes reflect a market that has experienced rotation instead of a full-fledged correction in the first quarter of 2021.
We make no Sector changes but have made a number of stock changes to position ourselves for 2021. Generally, we have removed some weaker or more speculative charts, and replaced them with bigger names.
Watch Small Cap and the Transports – these economically sensitive indexes have continued to improve in the last month, and this should continue into the end of the year.
