Investors Business Daily still says the market “uptrend under pressure.” IBD indicates a couple of negatives are market up, but on declining volume and there have been 6 distribution days for the S&P 500 and 4 for the Nasdaq. That number of distribution days often leads to a declining market.
Alan Greenspan, former chairman of the Federal Reserve, who brought us the housing crisis with his excessively low interest, made a comment that “the sooner we come to grips with this excessive level of assets on the balance sheet of the Federal Reserve,… the better.” He continued to indicate it would nice to taper down the assets but the market may not give us the leeway to do what we would like. My view of the Federal Reserve asset purchases, now at 85B per month, is sort of like the off book debt which ENRON used so “well” many years ago. The 3.4T is a lot of off the book debt – ENRON called their off the book debt “special purpose entities”.
The sum of the deviations (1038,964,841) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up so it is not a time to invest.
My current investments:
SConstruction&Housing has a price of $55.58, a sell price of $54.85, a relative rank of 33, and is a hold until it falls another 1.33% or I need the money to buy a better fund.
SAirTransportation has a price of $48.05, a sell price of $46.34, a relative rank of 17, and is a hold.
SAutomotive has a price of $47.54, a sell price $45.67, a relative rank of 02, and is a hold.
SBrokerage&InvestmentMgnt has a price of $62.53, a sell price $59.58, a relative rank of 03 and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None