Hello,
This week Old_Skeet's market barometer had an average reading of 147 which is up from last week's reading of 142. Over the past four weeks the barometer has had an average reading of 145 putting it just barley in fair value territory. A higher barometer reading indicates there is more investment value in the S&P 500 Index over a lower reading. The barometer's scale ranges from a low reading of 120 to a high reading of 180 with the mid point being 150. In the past I have seen barometer readings in the low 130's to the high 160's.
Last week I covered a revision in the earnings feed. This week I'll cover the breath feed since there has been some noteworthy happenings. With March's closing high the breath reading was at 82 indicating that 82% of the stocks in the Index were above their 200 day moving average. This Friday the breath reading was at 72. Thus, the number of stocks currently above their 200 day moving average has now started to pull back. I'm thinking the price action will soon follow with stocks going soft as we move into and through the summer. Know that there are many perspectives on this subject with some thinking otherwise. For reference 2017 opened with a breath reading of around 64 and barometer reading of 147. At the time of the November Presidential election the barometer had a reading approaching 160 with a breath reading of 63.
I am still moving towards my summer asset allocation where I rebalance and move towards the low range in my asset allcoation for equities. As I write I am pretty close to this target. I usually close my investment shop for much of the summer and re-open early if market conditions warrant and for sure by Labor Day. There will be a couple more of the Markets and More threads to be posted before I knock off for the summer.
Thanks for stopping by and reading.
I wish all ... "Good Investing."
Old_Skeet
