Special Risk Capital Management LLC

Proceed With Caution July 23, 2016

July 21, 2016 – I’m on the road, so this will be short.  But really, not much has changed.  True the markets are moving higher but I am wary about the narrow bars (not much commitment) and look volume (activity, No Demand).

.Market Sentiment remains Bullish but there is very light bullish commitments.’  Money Flow is neutral and light to mirror the low volumes that we’ve seen.  Second quarter earning are about half way through reporting and so far have been “OK” in general.  What is there to drive the markets higher?  I’m not sure

The sectors I’m watching and are strong (for the time being) are:

Real Estate, Software, Metals & Mining and (select) Consumer Products.  (pie chart below)

Also I’m seeing positive activity in Latin America, Emerging Markets, Semiconductors and Technology (all have been beaten down latterly).

I have purchased some stocks but I’m holding a good chuck of Cash too.  If you must, “Proceed With Caution”. Have a good week.   ……..  Tom  ……