7-19-2015 Comments

Watch lists are updated. Watch lists are a bit shorter than normal because of the extended nature of the market. The MarketSchool exposure model quickly built up to full exposure last week with a follow through day on Thursday. There were some buy signals held in the back pocket before the FTD such as lows above the 21-day and lows above the 50-day and then on Friday the NASAQ made new highs as well as lows above the 21-day for 5 or consecutive days. These are all market buy signals. Perhaps the NASDAQ-centric nature of the market exposure model is being swayed by the big tech stocks.

I did not chase this market although it was apparent on 7/9 that the market would likely bounce to possibly new highs. Now that we are there one has to wonder if the market is going to do what it has been doing every time it makes new highs by pulling back by around 5%. This is a tough market to chase and it is quite okay to be in cash. As Pascal has noted all of the money is suddenly in large tech stocks (check out GOOGL). So GOOGL may have beat earnings estimates and scored a whopping 17% EPS quarterly increase, this is not my kind of market where I am looking for stocks with consistent EPS increases of 25% to 500% or more quarter after quarter after quarter. GOOGL sales were flat to a slight decrease.

My wife and I are headed out for a cruise to Alaska on Thursday so I may not be posting until after I return on August 3rd which is a Monday. I will not be taking my computer with me other than an android cell phone.