Bad Breadth

This chart measures the percentage of stocks in the S&P 100 Index trading above their 200 day moving average. In a bull market, you should expect to see the majority of stocks participate in the advance, but today, only half the market is in rally mode. This can change. The stock market could simply be pausing for breath before the next move higher, but the weakness is concerning. We are in year ten of this bull market. The previous few ended with a similar drop off in market breadth before price gave way and the broader indices followed lower. Time to remain defensive for now. 

 
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I lowered the equity allocation in my Active Asset Allocator strategy from 20% to 0% on 2nd March 2018 and am patiently waiting before I make my next move. Meanwhile, after a few months rest, Gold Trader is firing up again. Get in touch to find out how you can make low-risk, tax-free profits and only pay fees if you make money. Enjoy a beautiful, sunny Bank Holiday Monday everyone!

At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader investment strategies, please get in touch at brian@secureinvestments.ie or 086 821 5911.If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.

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