Weekly Risk Report 07/27/2009
The rising market values have again taken our SignalPoint portfolios back to or near selling prices. This is good news as we like to see rising cash reserves when market risk is also rising. Selling has occurred in many of the stock portfolios as well as a mix of buying and selling in the income accounts.
As we’ve seen risk rise, our market risk assessment model has also noticed. Relative Valuation, while still bullish, has risen quickly in the last few weeks. The Speculation component that had signaled a warning earlier this year has started to level out. Relative Valuation and Speculation have offset each other keeping the overall risk level at the lower end of the Neutral range. Heavy market participation has been primarily driving advancing stocks while far fewer have been in decline. New Highs (52 week basis) are starting to rise statistically. New Lows remain a small percentage of the issues traded. Both the larger and smaller capitalized stocks are moving in harmony and our risk indicators for both are still in lockstep.
As always, we remain vigilant reviewing the general health of the markets and overseeing potential profitable activities.
