Special Risk Capital Management LLC

A Slight Pause . . For Now February 25, 2012

This will be a VERY short post as I’m away from my 24 inch monitor and working on a 10 inch screen is not a joy, especially doing graphics.  So, here we go . . .

Last week (Friday to Friday) the S&P 500 Index went up a modest +0.33% and the Small Cap. Russell 2000 Index went down -0.21%; a minor sign of “risk off”.  You’ll also note the daily bar action on the S&P last week circled in green (below).  These bars are narrow (difference between the high & low price for the day), and (not shown) the volume dropped off significantly.  Low Volume = lower activity; low bar spread = lack of active buying or selling commitments.

chart courtesy of MetaStock / Equis International; used with permission.

It’s too early to tell if this is the early stages of Distribution, but we’ll keep an eye on this in the following weeks.  I think any correction should be shallow, since the world banks (government sponsored) are pumping liquidity into the world economies.  Read into that low-interest rates to help “burn off” the debt.

What’s doing well?  So far: Technology, Japan, Wireless mobile, select Internationals (especially Latin America) and Oil.  The big question is whether the rising oil price will put a damper on the world economies.  That’s a big wild card right now.  So continue being extra careful and have a good week.  Next week I get back to “normal”.   🙂