Weekly Commentary
February 3, 2010
Where is the market headed? Nobody knows. It is disconcerting that in the final week of the month, resolution to some uncertainty catalysts (State of the Union and Bernake confirmation) of the prior week were resolved only to be met with more downside market action. Failure to rally from oversold levels in the face of clarity and positive economic news, the release of the 2009 Q4 GDP at 5.7% which was the fastest growth pace in six years, only further abets our premise to "play it safe."
The first 2 trading days of February experienced positive market action, but with dramatically diminished volume as compared to the last few days of January. With the Stadion Investment Model giving us a signal for increased market risk, we will wait to see overall improvement in price, breadth, and volume before purchasing back into the markets.
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