Facebook Twitter Gplus YouTube E-mail RSS
magnify
Home Featured Waiting for a Direction
formats

Waiting for a Direction

Over the past week, my core market health indicators bounced around, but had no significant changes. With most of the indicators compressing near the zero line, it appears that the market is waiting for a direction. One thing of note, is that my measures of market quality are very close to going negative. I suspect that the market will need to rally next week or this category of indicators will cause us to change the core portfolio allocations (raise some more cash or add more hedges).

However, the volatility hedged portfolio is still a long way away from a negative reading. This means it would take substantial perception of risk in the market to hedge. This portfolio is still 100% long. Another sign the decline isn’t causing panic.

 

Conclusion

My core indicators are compressing near zero. This indicates that market participants are waiting for a direction. Measures of risk are still healthy. This also suggests that everyone is waiting before taking any serious actions. So, we wait and see what next week brings.

 
 Share on Facebook Share on Twitter Share on Reddit Share on LinkedIn
No Comments  comments 
Add Comment Register

Leave a Reply

Your email address will not be published. Required fields are marked *

HTML tags are not allowed.