
Over the past week most of our market health indicators held steady. As a result, there are no changes to our core portfolios. The most concerning thing I see at the moment is the perception of risk is rising. Most of the components of our Market Risk Indicator are negative and I suspect a break below 1600 on SPX will create a market risk warning. That would result in us adding an aggressive hedge to our hedged portfolio and going to 100% cash in our long/cash portfolio that recognizes risk. My take on the current situation is that the core underpinnings of the market are strong, but there is nervousness ahead of a long weekend that may see the United States engage in military action against Syria. Once that situation is resolved the market should move higher. The nature of that bounce will give clues for the longer term direction. Below is a chart with the current health indicator category levels.