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Weekly Economic and Stock Market Commentary – July 12, 2021


Weekly Economic and Stock Market Commentary – July 12, 2021

As for the stock market specifically:

Last week reminded me of the opening comments and scenes of ABC’s Wide World of Sports, from the 1970s. We had 2 days of the ski jumper sprawling around in the agony of defeat, and 2 days of the Little League World Series champions jumping up and down to celebrate the thrill of victory. Once again, and it always feels good saying it, we start the week at record levels – which means the markets moved up last week.

This week starts earnings season. With this, and with many seasoned Wall Streeters vacationing, leaving fewer experienced traders running the desks, don’t be too surprised if we get a bit of volatility.

The markets continue to defy the movement of my risk assessing tools. That is a reason why I have not made any major moves in months. We like when the markets go up while on defense and don’t like it when they go down on offense, but that is part of the game.

At some point, the indicators and market averages will move in tandem. At that point, I will make a full commitment in the appropriate direction.

It was a rough week for the bullish percent indicators. All of them fell at least 5 percentage points. The OTC Bullish Percent indicator turned negative. I now recommend WEALTH PRESERVATION for client money.

Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.

Below is where our indicators stand as of July 9, 2021 (Courtesy Dorsey, Wright, and Associates).

On a general note:

It appears the economic data reporters too took a vacation last week. No economic reports reached my inbox, and I don’t remember anything of consequence, but that is what sometimes happens in Summer.