Market Risk Report as of September 13, 2021

Man looking at directional arrows on notebook paper

From Chief Investment Officer Tom Veale,

“It might seem odd that after a week like last week we’d see the SignalPoint Market Risk Indicator continue its decline. Yet the trading helped to bring down three of the MRI’s components and left the fourth unchanged.

While the MRI is still above its median value it has contracted in risk profile from the high point seen earlier this year. Much of the recent improvement has come from the reversion of SignalPoint’s IPO/New Issues Index back toward its more normal range. Recent headlines suggest there may be yet a new wave of IPOs and New Issues later this year – but much of that depends on the behavior of the markets. If the zealous enthusiasm continues, so will the attempts to bring new companies into the public arena for trading.
In the meantime we have had a week of declines on essentially all the major US Domestic exchanges. Even so, the number of new 52 week Lows remains quite low. The Advance/Decline ratio was not as happy with more than two issues declining for each that rose last week.
Best regards,
Tom Veale
The SignalPoint Market Risk Indicator (MRI) declined one point to 35 this week while the MRI Oscillator remains at zero (indicating no upward or downward risk pressure).”

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