Weekly Risk Report 06/15/2009
This week has started with more consolidation working its way through the system. This is to be expected after the massive gains seen in the last 13 weeks. The i-Wave is short term bearish because of the apparent Speculation in the market place. All I can say is that “recovery” isn’t the same as exuberant health.
With the Speculation component decidedly bearish we still have the other three components giving bullish signals. If the markets do consolidate in somewhat of an orderly fashion, it can be assumed there is still some upside potential.
We are seeing some of this consolidation in both our Income and our Stock portfolios. As the pace of price rise has slowed, so has our selling of small amounts of the inventory. Most components are still closer to selling shares than buying more at this point. We expect to see the Speculation component start to moderate in the coming weeks which will bring the overall risk level back to the mid-average risk range.
