Market Risk Report as of November 29, 2021

From Chief Investment Officer Tom Veale,

“Black Friday had a slightly different connotation for investors this year. We saw a lot of stocks, indexes and funds punished for just existing. Collateral Damage. The latest Covid variant announcement came on a day when markets were still digesting Thanksgiving dinner. A bit of MAALOX might have helped.

We saw the S&P 500 drop in concert with the “Equal Weight S&P” last week which brought them back together for annual performance. In reviewing our Signal 10 U.S. “equal weight” domestic sector ETF portfolio I find that all but two of them are still at or above 90% of their “next sell” target prices. So, even with Friday’s slippage they’re still quite close to when we’ll next review their individual equity/cash positions. All but one are at or above their 26 Week Moving Average prices, too.
Our Market Risk Indicator had jumped upward in recent weeks and remained unchanged as of last week’s close. It’s still well above median value but below the peak seen earlier this year. It remains to be seen whether last Friday’s downward move was “consolidation” or just a panic move. The recent group of additional retail stock traders may not be as solid in their love of equities as more traditional investors. This group will shift money quickly as long as there is perceived gain potential.
Best regards,
Tom Veale
The SignalPoint MRI is unchanged this week at 39. It’s MRI Oscillator value came down to +2 as three of the four components declined in risk evaluation.”

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