Weekly Commentary

May 19, 2010

Over the course of the last week, the markets have continued to swing wildly up and down with incredible volatility. Each day as positive or negative news regarding the European debt issues emerges, the markets react violently in the corresponding direction. However it seems that with each passing day the situation changes to the other side, and no strong conviction has developed regarding the potential outcome. These excessive market price movements continue to be read as a negative indication within the Stadion Investment Model. Our market trend indicators continue to deteriorate with the market's overall sideways movement. In addition, market breadth has continued to drive our other indicators in the negative direction. Presently we have declined to our our Red market environment, which is a high risk market in our opinion. Having recently come out of the Orange and Yellow market environments, it would take an extreme reversal of market prices and a very positive and sustained trend with confirming underlying data to have us putting assets back into the equity markets. While other market participants try to decide how they should handle the temperamental market condition currently prevailing, we will continue to wait for the market data to show us that positive trends are in place, with positive supporting data.

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