As Judge Smalls (Ted Knight) said in Caddyshack, “Well, we’re waiting…”
That’s how we feel about the S&P today. We’re closing another trading week with no resolution to this grinding sideways chop.
The past few weeks have given us six up days when stocks caught a bid, followed by two down, then two up, and now three down in which stocks suddenly look weak, but oversold. All this up-down and we’re right where we were three weeks ago, the S&P 500 sitting right on top of its all-important 200-day moving average.
From a technical perspective, we can easily talk out of both sides of our mouths. Several important indicators lean bullish, but a couple of equally important ones lean bearish. We’ve deployed a small amount of cash the past few weeks, nibbling in starter positions on a dozen names or so, and will add to them if they move higher, and bail on them if they don’t.
Based on the S&P today, we still don’t believe in taking on much risk, at least until the market shows its face on the direction it wants to head into the end of the year. Until then, we wait…enjoying the healthy interest on our cash.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.
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