Psychology's Outlook is Still Cautious

We repeat, the short-term is by far the least predictable trend of the market, but for fine-tuning portfolios, we do pay attention to the indicators shown below.  



As you can see, in mid-September of this year, the indicators above had moved into the red zone, which makes us a little more cautious on short-term buying.  So far, even though the breadth of the stock market has deteriorated somewhat, the market indices themselves have continued to make new highs.

Despite that, however, we are still holding to our short-term skepticism a little.  We've also seen our Psychology Composite bobbing and weaving into the P5 zone, which also often precludes a little resting period for stocks.


Don Hays

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