The story line continues as the Federal Reserve makes headlines yesterday. It's likely that the market will remain FED driven and skittish throughout the year. The FED report came out pretty hawkish along with Powell's news conference causing the markets to reverse earlier gains and to close on their lows of the day challenging June lows. Will the market hold those lows or make new lows? That's the question. Due to the heavy selling volume, indicating institutional selling, and the course of the FED, it's most probable that new lows are in store for this market. Below are our updated charts detailing the major averages and the internal numbers like the advance decline line. All of the technical indicators suggest maintaining a very conservative posture in the market both in equities and bonds. Currently, we are building positions in treasuries going out 6 months with most of of our reserves in the highest yielding money markets that we can buy. That said we are still trading opportunistically with a nominal exposure both short and long equities as we try to navigate and scalp what we can in this treacherous environment. Viewing the updated graphs below, one only needs to recognize the complex price structures under their negative sloping 200 day moving average lines (red line) that caution is warranted in this current market.
We periodically update our charts below. Please review them as they are a main driver in our investment process. Study of price action has been a key component in our portfolio management system to mitigate market risk during extreme times.
IMPORTANT DISCLOSURES Copyright © 2017 McKinney Asset Management, Inc. - All Rights Reserved.
The information in this communication is for informational purposes only, and has been obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. The opinions expressed are subject to change without notice and may not be updated. Past performance is not a guarantee of future performance. *Actual client portfolio allocations and results may vary due to individual client circumstances and investment timing. This communication is not an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any state where such offer or sale is unlawful. Our Market View updates and Blog are written by John E. McKinney. Questions or comments regarding these updates or other investment services offered should be directed to him at firstname.lastname@example.org.