Market comment 12 11 09

The stock market rallied yesterday, but all the major indexes are still in trading ranges. Movement within a trading range is usually not very significant, so I don’t consider this short-term strength to have any longer-term significance. In the meantime, junk bonds funds continue to slowly trend higher, so I recommend ignoring the day-to-day volatility in the stock market while we continue to hold uptrending low-volatility bond/debt funds. We continue to use moving average stops to protect our bond fund positions.