Special Risk Capital Management LLC

Ditto May 21, 2011

A very uninspiring name, “Ditto”, but that’s where we’re at now.  I could really just replay the commentary from the last 2 weeks and . . . that’s where we’d be.  But, a brief re-cap:

Top Markets: Defensive Stocks, Micro Cap, NASDAQ 100, Large Cap.  (See the dichotomy of thinking here; less risk and more risk.)

Top Sectors: Consumer Staples, Healthcare, Transports, Utilities, (then) Consumer Discretionary; again a strange mix.

S&P 1500 Index continues to be mixed.  The number of stocks in Accumulation and Distribution are about the same; the number with Accumulation Up vs. Down is about the same.  Bottom line is this market is indecisive and I’m more concerned about it being driven by a news event.  Continued Caution is a good plan here.  The chart below shows the S&P 500 Index for 2011 to date.  Yes, a general up trend but the trend appears to be consolidating.

Have a good week !