Yesterday's market action was positive.
Yesterday was day six of a new rally attempt and we are yet to see one of the main indexes follow through. The Nasdaq Composite edged up 0.3% on above average volume.
On the surface its behavior seems unimpressive however when looking at a daily chart, you see it bullishly reverse off its all important 50 day moving average. The S&P 600 also managed to climb back above its 50 day moving average.
The global materials sector, India and Russia all underperformed the market. Leading stocks action was positive.
In summary even though the Nasdaq has yet to stage a follow through, the market is behaving in a constructive manner. The indexes are acting well, trading volume on the indexes is returning, and leading stocks are acting well.
If the market does stage a follow through, I would see it as a bonus. Due to this my short term stance has shifted from neutral to bullish.
Please note past performance should not be used as a guide to future performance, which is not guaranteed. Investing in the Funds should be considered a long-term investment. The value of the investment can go down as well as up and there is no guarantee that you will get back the amount you originally invested.
ISACO was established in 2001 by brothers Stephen and Paul Sutherland and is the first financially regulated firm to offer adventurous ISA and SIPP investors a unique personal investment service that shares on a daily basis our star-performing investor’s thoughts, personal insights and investment decisions.
Clients enjoy being informed throughout the year what ‘best of breed’ funds our premier investor currently owns, when he’s buying and when he’s moving into the safe harbour of cash – helping clients enjoy more control, manage their portfolio more effectively and benefit from the potential of outstanding long-term returns.
For more information about ISACO and our Investment Guidance Service, please read our free brochure.
If you have any questions or thoughts on the points covered in this post, please leave a comment below or connect with us @ISACO_ on Twitter.