Market in Correction Mode

The major market averages were lower all day and closed to the downside.  All the major averages now have patterns of lower highs and lower lows. This is the definition of a downtrend. The market is in official correction  mode now.

The S&P 500 futures are selling off hard as of this writing, so Tuesday could also be an ugly day.

Our risk management system is showing its effectiveness again.  All GWM Model Portfolios are currently well positioned to minimize account loses and weather this downturn.

Because we have plenty of cash on the sidelines we will be better positioned to take advantage of this downturn and pick up some bargains when the bull market resumes. 

(Click on chart for easier viewing)

Market Performance - Weekly - Month to Date - Year to Date -

The market remains in a hightened risk environment.

Priced as of March 11, 2011, market close

Market Comment 03 10 11

The market remains very volatile. Today the S&P 500 closed below it's 50 DMA (50 day moving average). The market action over the next few days should be very telling. If I had to guess, I would expect further downside. I closed out our remaining positions in gold this morning. At the moment all GWM Model Portfolios have minimal exposure to equities.

http://www.gerritz.com/



Took Profits in Silver and Crude Oil ETFs Today

I took profits in silver and crude oil ETFs today. We made a nice profit in a short time.

I believe the "Day of Rage" planned in Saudi Arabia on Friday will likely turn out to be a none event.  Saudi Arabia is not an Egypt or Libya. The Saudis are much wealthier and their tribal ties are much stronger.

Oil has been driven up by speculation and fear, not fundimentals. We now have no exposure to oil.

Is a Market Correction at Hand?

Is a Market Correction at Hand?
Video Market Analysis by:
Stephen L. Gerritz, CFP

Click the Video Spotlight icon to view video.

Rare CNBC Interview with the world's largest hedge fund manager

Ray Dalio, founder & CIO of Bridgewater Associates, runs the world’s largest hedge fund with $89 billion under management, returning more for the fund’s investors last year than Google, Amazon, Yahoo and eBay combined.


Click on the Video Spotlight icon to access this very insightful commentary by Ray Dalio.

Physical Gold vs.Gold Stocks

Most GWM Model  Portfolios currrently have a position in GLD (Physical Gold ETF). The chart below compares the performance of physical gold to a portfolio of gold stocks (GDX ETF) during the stock market decline in 2008. Physical Gold held up very well, while Gold Stocks languished during this period.

If the market were to correct near term, I would expect the physical gold ETF, GLD, to hold up once again.

(Click on chart for easier viewing)