Market Risk Report as of November 15, 2021

From Chief Investment Officer Tom Veale,

“Last week’s market action was a bit more confused than previous weeks. Market breadth wasn’t as healthy with declining stocks outnumbering advancing ones. Further, the number of new 52 week lows swelled enough to change our Divergence Index from neutral to bearish. It joins our New Issues/IPO and Relative Valuation Indexes in that territory.

While our MRI has been boorishly well above median value last week’s trading didn’t bump it up very much. With three MRI components rising in their own risk arenas and one remaining unchanged the overall risk signal rose slightly.
Treasuries remain unexciting with yields at pathetic levels. Overall, with share prices where they are, the Value Line 1700 average yield dropped to just 1.7% for those stocks paying dividends. (Median is 2.3%) It would appear value stocks are richly priced right along with growth stocks.
Best regards,
Tom Veale
SignalPoint’s Market Risk Indicator comes in at 36 this week, up a point from a week ago. The MRI Oscillator shows +5 indicating a high level of upward risk pressure.”

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