Bears Taking the Ball

Monday saw the not so unusual weakness we have seen lately. However, Tuesday did not see what has become the typical bounce back since the stock market last bottomed in Q1. While I don’t want to assign too much emphasis on one single trading day, especially when it’s in my best interest, perhaps the market’s character is beginning to change. I continue to look for a bull market pullback in the mid to upper single digits.

So far, price, the final arbiter, has done nothing wrong in most of the major indices although I would argue that the S&P 400 and Russell 2000 have started rolling over. While semis continue to move sideways, banks have broken down from their range and hard. On the flip side, high yield bonds have had an awakening and are now at all-time highs. That’s one of the reasons I don’t think the decline could become a full fledged 10% correction. Liquidity remains strong.

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Paul Schatz, President, Heritage Capital
Paul Schatz, President, Heritage Capital
If you have at least $250,000 of investable assets and would like to schedule a complimentary meeting, call, or video conference with me, please click on my calendar here email me at Paul@investfortomorrow.com or call the office directly at 203.389.3553.

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