Special Risk Capital Management LLC

Continue With Caution December 17, 2016

Dec. 16, 2016 –  I’m controlling my home computer remotely via a small laptop, and I don’t care for doing graphics or typing on a small screen.  So . .  this will be brief, but that’s OK because not a whole lot has changed.

The market continues though much more selective than the previous weeks.  Small cap stocks and the broader market are not a strong as the big name, large cap stocks.  OK, I’m continuing to make a case for a pull back, but likely it will be delayed until after the first of the year to defer taxes (my opinion).

Friday was options & futures expiration which accounts for the big volume spike, but the broad NASDAQ Composite Index really didn’t do that much.  The reverse trend line that I’ve spotted in may give us an early warning of any weakness.  The other indicators (above the price chart) are still pretty bullish for now.

What I am showing below is the velocity (speed) of Accumulation (buying) and Distribution (selling).I note that the “buying” has slowed.  Now that does not mean impending doom, but more a caution sign.  This market is narrowing with select banking, financial, materials and tech stocks in the lead; the rest . . . are not that enthusiastic.

That’s it for now.  Enjoy the holidays and the family, but be carful about this market.  It can change “on a dime”.

…………..  Tom  ……………..