Where to Now?
We are staying with our comments of October 8th. The 950 area on the S&P and Gold remain important areas to be tested, specifically the 944 to 963 area of the S&P. The declines into that area will probably be erratic as the opposing forces looking to be buyers on sell-offs will be offset by investors who view a panic drop as imminent.
T-bonds broke down at the 120-15 area on October 9th and that area seems to be resistance on rallies. To us that means that the market overall is looking at economic recovery rather than collapse and is an important indicator to watch. Employment numbers will be a guage on Friday. We don’t see much change from the dismal numbers of the past few months.
Our portfolio performance numbers through the end of October on Friday are as follows.
S&P 500 Index Eureka Aggressive Eureka Conservative
Year to date + 14.7 % + 4.6 % + 9.1 %
12 months + 14.1 % + 22.3 % + 6.2 %
24 months (33.0) % + 61.2 % + 44.5 %
36 months (21.3) % + 48.6 % + 33.4 %