Note: The US investment markets, and my office, will be closed Tuesday, July 4th, for the obvious reason. Normal operations resume Wednesday, July 5th.
As for the stock market specifically:
The major market averages saw declines of more than 1 percent each, which is a substantial move for one week of trading.
The story of the year continues to be the lack of movement by the Dow Jones Industrial Average components combined vs. the few tech stocks leading the Nasdaq Composite, and also the S & P 500.
Yes, last week I did write that the rally started broadening.
Last week, for whatever reasons, people decided they wanted cash instead of stocks. We’ll need the passage of time to see which of these opposing camps win their respective battle.
The bullish percent risk indicators all had difficult weeks. They each fell by at least 1.5 percentage points, though not in danger of turning defensive yet. The short-term indicators did go negative, but that does come with the normal ebbs and flows of markets. I continue to recommend WEALTH ACCUMULATION strategies.
Remember, X’s mean OFFENSE or wealth accumulation, while O’s mean DEFENSE, or wealth preservation.
Below is where our indicators stand as of June 23, 2023 (Courtesy Dorsey, Wright, and Associates).
On a general note:
No economic data worth discussing reached my inbox, so I will end now.
Please contact me if you have any questions or want more information.