Market Risk Report as of November 13, 2023

From Chief Investment Officer Tom Veale,

A two week rally has done the major stock indexes quite a bit of good. However, it doesn’t appear the breadth has reached downward in capitalization to the Small and Mid Cap stocks. Those stocks are still well off their mid-2023 highs.

Looking at our Market Risk Indicator we see the indexes push upward moving all four of the MRI’s components upward in risk, too. This wasn’t enough to move the MRI upward but did erase the MRI Oscillator’s downward risk pressure.

Risk has quit descending. Will the mega caps lead all stocks higher or is this just a head-fake heading into the end of the year?

Currently two of the MRI’s components are still “proactive” in their risk measure while two are closer to their median values. Overall, the MRI remains below its own median value. This suggests that looking out 6 months upside potential still outweighs downside risk.

Best regards,

Tom Veale

SignalPoint’s MRI remains at 23, unchanged from the previous week. The MRI Oscillator shows zero, giving no upward or downward risk pressure indicated.

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