Market Snapshot
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| Slow grind higher on light volume. |
Market Direction Model
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| The MDM is all green |
Trendline Analysis
Chart View
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| We are now once again at the top of the upper trend channel. The market has flattened out; so, a pullback or more sideways action should be expected. |
Equity Sector Rotation
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| Investors are rotating out of the defensive sectors and in to the the cyclical sectors, i.e., energy and tech. |
Flexible Income Analysis
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| Income oriented investment have suffered due to a quick spike higher in interest rates. |
The sector rotation now going on is clearly demonstrated by the charts above. As the markets change our model portfolios change.
The Flexible Income Folio had definitely presented us with some challenges last week.
With the market now in the upper part of its trend channel, it is prudent to wait for a pullback before aggressively adding to equity position. Additionally, certain areas of the flexible income category simply need to be avoided right now.
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