Daily Market Snapshot 05 08 2012

Daily Market Snapshot       

Correction Continues

All GWM Model Portfolios housed at FOLIOfn currently have very high levels of cash. We currently have a defensive posture with positions in high quality bonds and just a few defensive equity positions.

GWM Model Portfolios housed at Shareholders Service Group (Pershing) are managed with a longer term perspective. A further deterioration of the markets will lead us to reduce risk exposure in these accounts as well.


Rydex Funds and Variable Annuity Managed accounts are 100% cash and bonds orcurrently.

Market Direction Model

Green = Buy
Yellow = Nuetral
Red = Sell

The market closed substantially off it's lows on Tuesday. This means that there is some interest in stocks at these lower levels.  Futures are indicating a lower opening on Wednesday. We will have to see if buyers step in to support the market later in the day. A bounce may be in the making. If so, I think it would be an opportunity to sell.

Addendum:

Here is what the markets are worried about.

With the movement against austerity programs in southern Europe there is a concern that the Euro Zone could splinter. This could cause a run on their banks as savers flee depreciating currencies. This is a big problem. Revolutions have erupted from lesser financial fiascos.

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