Market Wrap – week ending 2/28/2014

Another productive week for the market.  All in all, we spent the week consolidating (going sideways) with basically no gain or loss.  Given how elevated things are in the short term, this sideways movement is good action to see.  Especially given the fact that we have closed up 14 of the past 16 sessions … a pull-back would not be surprising and the fact that this is not occurring is definitely bullish.  Today in fact was a very good test as the market was down almost 1% intraday and it recovered to close down only 0.25%

As you can see above, we move back into the market on Monday afternoon on ‘the One’ strategy, which was the last strategy still out of the market.  So … we are fully invested at this stage.

The market is looking fairly ‘clean’ right now, my only concern is today’s high volume, volatile drop.  Ideally we don’t want to see steady rising and then a sharper than normal drop on heavy volume.  It shows that investors are quick to exit the second something skittish happens, which isn’t a healthy environment.  But given the complete reversal of the 7% drop in January, some of this is normal.  The short term traders have come out and are exerting influence on the market.  With that said, the fact that we did drop so much today and buyers came in and stabilized the market is definitely a good sign.   There’s no question that there is support for the market when tests occur during intraday drops.

Year to Date, the Nasdaq is the only real performer with a gain of approximately 3%.  The S&P, NYSE are barely above breakeven for the past 2 months and the Dow is still showing a loss.

Hope you have a wonderful and safe weekend.

Respectfully,

Randall Mauro

Resnn Investments, LLC