Special Risk Capital Management LLC

Not Much To Like September 12, 2015

I’m not finding much to like in here.  Sure there are a few stocks that are showing signs of life, but without much conviction or confirmation.  Volume has been low, even after the summer holiday excuses.

We remain in that base building trading range, roughly 4905 at the top and 4565 at the bottom.  Market Sentiment is neutral and it just looks like folks are waiting for the Fed to announce a slight increase in interest rates.  Shocker !  Long anticipated.

Some tech analysts are predicting a move lower and others a move higher.  There is a case for both, but I really don’t see a clear cut direction right now; I just don’t see a commitment either way.  Looking at my sector rotation model doesn’t help, since neither the long or short funds (domestic or international) are indicating a clear edge.  And so I (we) wait.  Whichever way this market breaks I’m concerned that it will be quick.

On my list of stock candidates (which is slim right now), I note the number in each major industry / sector below.  (click on graphic to enlarge)

Biotech and airlines are showing some interest, but I was surprised to see the battered down casino / gaming stocks making an appearance.  Without much conviction either way, it’s a time for caution.  Have a good week.      ………..  Tom  …………

chart by MetaStock; pie chart by http://www.HighGrowthInvestor.com; used with permission