This weeks market action servers to prove that not everyone is on the “green shoots” wagon, and that there are investors a plenty that believe the past few months optimism based on the world economies having gone from very bad to less bad, is still a brighter view than actual reality. A correction to the recent trend in most markets which after rising for some time, saw declines in equity prices, bond yields and commodity prices. General declines in risk appetite seem to creep back into the trade. Some would argue that doubts are setting in over the strength of the recovery. This may be due to the recent new headwinds of rising oil prices and bond yields which could make it difficult for the recovery to continue into next year when all the stimulus fades and the inventory corrections are over.
If the decline in risky assets appetite has truly returned, it will in some way reinforce the impression that the economy has disappointed. However, it is our contention that it’s more market focus that has changed, rather than the data picture. On balance, the data flow has continued to show slight improvement and therefore remain slightly bullish.
The NASD and S&P weekly Candlestick Charts
Let’s Review the Swing Trade Portfolio:
Here is what how the indices have performed year to date:
| Index | Started Week | Ended Week | Change | % Change | YTD |
| DJIA | 8799.26 | 8539.73 | -259.53 | -2.9 | -2.7 |
| Nasdaq | 1858.80 | 1827.47 | -31.33 | -1.7 | 15.9 |
| S&P 500 | 946.21 | 921.23 | -24.98 | -2.6 | 2.0 |
| Russell 2000 | 526.83 | 512.72 | -14.11 | -2.7 | 2.7 |
Current Market Strategy…
Remember to be Patient. We be selective with our trades and hedge our portfolio as a whole. We will be investing more defensively for the time being as uncertainty remains. As always be patient and remember, capital preservation our number #1 goal in these market conditions. We will continue to look for selective trading opportunities split between our short trades, swing trades, and long-term investments.
