From Chief Investment Officer Tom Veale,
“Looking over last week’s confused activity we see no change in SignalPoint’s Market Risk Indicator. Overall it’s unchanged and still well above its median value.
Advancing stocks were again well below the number of decliners last week. The ratio was nearly three decliners for every on advancing stock. Disappointment that quarterly earnings aren’t riding a rocket plane to outer space along with company presidents seemed to be the theme for traders. In the meantime Value Line’s median price/earnings ratio dropped below 20 for the first time in months.
It remains to be seen if the week’s market declines is the start of a trend or just part of the Summer doldrums. Substantial cash reserves built into SignalPoint’s various portfolio strategies are available if the market decline should continue.
Best regards,
Tom Veale
The MRI came in at 38 again this week with a +2 MRI Oscillator indicating only modest upward risk pressure. Two components remain above their median values (Relative Valuation and New Issues) and somewhat bearish while two are neutral (Speculation and Divergence).”
