Market is Still Scared
Even though the S&P index closed over 910 yesterday the market is not convinced that higher prices are in store. The fact that the perception of higher prices seems to be based on bailouts and cheap interest rates does not inspire confidence. While we keep hearing “don’t fight the fed” the market remains scared. Economic data will continue to be dismal for some time.
To us the only thing that will inspire spirited buying will be a strong rollout of the Obama plan, a rollout with congressional backing and administrative zeal.
In the meantime the S&P may see a relatively tight range of 890 to 940 during the Christmas/New Years Holiday. Clear closes over 950 would tell us that the market is on to bigger things. Depending on how the technicals build we may lighten up in the S&P 940-945 area. We will give a heads up if that occurs. On gold however, at the moment we are on a course to continue to build positons to where we will be 50 percent in gold for the breakout at $ 1000 next year. We will notify you of any additions in that area.
Our Aggressive Portfolio made a new all time high again yesterday, up 40 percent on the year after fees. Our biggest frustration yesterday was the attempt to include the ETF Portfolio table on the site. It apparently was too big so we finally had to take the table apart and use the regular editor for a sloppy presentation. Anyway the information is out there and we will need to get a better solution from the webmaster.
8:18 AM CST