Over the past week, my core market health indicators bounced around a bit, but are holding steady in bullish territory. One thing of note, is that my measures of the economy are on the verge of going positive. I suspect that there is a good chance they go positive in the next few weeks. Conclusion The market is rallying with healthy internals. Odds are we continue to move higher.
Over the past week, all of my core market health indicators rose. As I suspected, we’re getting new highs and not a long term top… just yet.
Over the past week, most of my core market health indicators rose dramatically. It appears that market internals are preparing for a move higher. As I mentioned last week, it looks like the current dip is merely rotation before a move to all time highs rather than the making of a long term top. The measures of market quality and strength moved into positive territory this week. That changes the core portfolio allocations as follows: Long / Short hedged portfolio: 90% long high beta stocks and 10% short the S&P 500 Index (or use the ETF with symbol SH) Long / Cash portfolio: 80% long and 20% short Volatility Hedged portfolio: 100% long since 11/11/2016
Market Risk Low
Volatility Hedged Portfolio
Long / Short Hedge Portfolio
Long / Cash Portfolio