Yesterday was a down day for most parts of the Markets. The S&P 500 Index closed down for the day with a reading of 2280.90 with a loss of 0.60%. The three best performing sectors were utilities, consumer staples and consumer discretionary.
In checking the markets as I write this morning Europe is up nicely while Asia-Pacific is most down with the exception being China. In the States the futures point for stocks to be down and government bonds to be up.
My market barometer is reflecting a reading of 146 which translates into a 49% weighting in equities for me. With this, the overvalue in stocks (500 Index) has been worked off and we are now in fair value range since the pullback of yesterday. The barometer takes into account the number of stocks above or below their 200 moving average line along with a blended P/E Ratio of both TTM and forward estimates plus another blended reading of the technical indicators of RSI and MFI when combined compute an average technical strength reading. Thus far, over the past couple of years the barometer has been used to assist me in adjusting my equity allocation within my portfolio. It has been useful to help determine when there is value in the market and when perhaps is a good time to trim some equity positions thus taking some profit. Since, the markets are now in an upward seasonal trend period with corporate earnings and revenues improving I favor equities over bonds. I most likely will be a buyer of equities should my barometer call for me to load equities within my portfolio during a near term market pullback. Notice, there is no mention of the Index's valuation being a component of the barometer.
There are no links today. If you need to reference a link use one of the previous post.
Have a great day ... and, I wish all "Good Investing."
Skeet
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