December has the highest average monthly gain (1.7%) for the S&P500 with 47 up months and 12 down months since 1950.
December has the second highest monthly gain (2.0) for the Nasdaq with 24 up months and 17 down months since 1971. The highest average monthly gain for the Nasdaq is January (2.9%).
Investors Business Daily changed their Market Outlook to Uptrend under Pressure this week. That suggests that investors should protect their profits and perhaps not make any new investments. 50.16% of the stocks in the Nasdaq index are above their 50 day moving average. That is the lowest weekly number since April. It would be nice to have a December up month like the Nasdaq had in 1999 – +22.0%. However the next year, 2000, was not a good year – -39.3%. Peter Bruno, www.peterbrunomedia.com, is still calling for a DJIA top of 16000+/- before a decline, and is also suggesting the bottom for gold is here. Another cloud over the market is the number of bearish investors – only 14% which is a record low for the last decade – suggesting a correction is close.
The sum of the deviations (1014,909,682) 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 – not a time to invest.
My current investments:
SAutomotive has a price of $55.91, a sell price $53.94, a relative rank of 10, and is a hold.
JapanSmallerCompanies has a price of $13.05, a sell price of $13.22, a relative rank of 87, and is a sell, however the short term sell fee is 1.5% and if I hold it one week more I will not have to pay that. I do not have a clue if the market is going to be up next week, but December has the best average monthly gain for the S&P500 and the second best for the Nasdaq.
Nordic has a price of 41.62, a sell price 40.40, a relative rank of 10, and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 60% invested