Prior Week Market Performance:
- The S&P large caps gained 2.6% last week to 2108.06.
- The Russell 2000 small caps gained 2.8% last week to 1266.37.
- Long Bonds (TLT) gained 3.8% last week to 131.51.
- Asset Allocation Model: unchanged. Stocks (52.5%); Bonds (27.5%); Discretionary (20%)
Last Commentary (two weeks ago): The Asset Allocation model remains unchanged for long term investors. IF we were to get further deterioration then it would be time to take a different tack. We get closer to a shift from long bonds, but not yet. Not yet. Be patient.
Current Technical Model Indicators (Short, Med, Long periods):
- Large Cap S&P 500 – BUY, BUY, BUY
- Mid Caps – BUY, BUY, BUY
- Small Caps – BUY, BUY, BUY
- Micro Caps – BUY, BUY, BUY
- Long Bonds – BUY, BUY, BUY
This Week’s Commentary: Technicals for all of the various asset classes except for Gold remain bullish and have not deteriorated over the past two weeks. The Russell small caps have clearly risen above a 1220 resistance point, and that is a positive leading sign for the overall market. Asset allocation continues bullish in favor of equities 52% to 28% for bonds.
This cannot go on forever, but for right now everyone is an investing expert. As long as the Fed sets the table the market will eat. For now.