OTM Market Update –

Prior Week Market Performance:

  • The S&P large caps lost 1.0% last week to 2081.18.
  • The Russell 2000 small caps lost 1.0% last week to 1251.86.
  • Long Bonds (TLT) gained 1.4% last week to 131.45.
  • Asset Allocation Model: Stocks (gained to 47.25% from 42%); Bonds (dropped to 34.25% from 41%); Discretionary (19.50%)

 Last Week’s Commentary:  The long and medium term trends are still intact, but I would expect this upcoming week to be a down week in the market.  If you are strictly intermediate or long term, there is nothing to see here, although if you are heavily weighted in equities you may want to hedge a bit into bonds.

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:  Well my prediction about this past week being a down week was right, but I am not a short term investor so I’m not going to keep making those predictions.  Right now the market technical direction is unchanged.  Still looks good in the intermediate and long term.

I have also included an Excel file of some market picks that have four considerations:

  1. They are technically BUY in all periods
  2. They flashed BUY in the past 5 days or less
  3. The Intrinsic Value of the company is below market
  4. The P/E ratio is low based upon historic 5 year norms.

They are for your consideration, but remember that there are no guarantees out there.

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