After Monday’s sharp rally, a pullback would have been in order yesterday but, as we’ve seen so many times in the past 6 months, a mid-day sell-off was rebuffed by last hour buying.
It was a tug-of-war between 2 news items, as the indexes initially were dragged down by a report that pending home sales fell 16% in November, far worse than the expected 2% decline.
Offsetting this piece of bad news were encouraging auto sales and a report that factory orders had risen more in November than analysts had anticipated.
All in all, it turned out not to be not a bad day given the previous run up. We are holding all positions subject to our sell stops, and I am making some portfolio adjustments to stay aligned with market direction.
Comments 2
Ulli: Would you mind sharing with us some ideas about your adjustments? Are you being more aggressive or less aggressive? The satement, 'making adjustments to stay aligned with market direction' is unclear to me. Do you think the market direction is up based on last few days run up? Or do you think that it is going to correct and hence are reducing the risk. Thanks. KIndly ignore this message if you feel a reply is not warranted or you do not want to disclose your thinking. I look forward to reading your response. Regards.
Anon,
Just making some adjustments for clients who want to be more or less aggressive.
Ulli…