Market Risk Report as of May 17, 2021

From Chief Investment Officer Tom Veale,

“It was an unusual week of market activity last week. Cap weighted indexes declined a bit while equal weight ones went sideways. A small shift away from momentum holdings moved investment dollars toward more value oriented issues. While not a tsunami there were tidal changes being felt.


SignalPoint’s Market Risk Indicator ticked up one point to 46 this week while the components split with two up and two down in their own risk ranges. However, three of the four are currently bearish. The MRI Oscillator is a modest +1.


In counterpoint we see our Speculation Index declining to its median value where our Divergence Index senses investors’ changing attitudes.


This time of flux may persist into summer. The huge amount of new issues generated in the last 12 months will need time to be incorporated into the rest of the market place. This time of consolidation, in the past, has taken up to 18 months. During that time major market indexes tend to be rather flat.”


Best regards,

Tom Veale

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