Special Risk Capital Management LLC

Market Back but Lathargic March 16, 2019

March 15, 2019 – The market has recovered from its latest “March Swoon”, but the underlying data is not that impressive.  We did break above the 7643 level which is positive, but you’ll note in the chart below, Market Sentiment and Dollar Flow remain behind in the recent move.

What that means is that certain areas, notably Technology based, are leading while other areas are just “so – so”.  Let’s jump into the sector strength tables and see where the leadership lies.

Tech based Electronics, Software, Semiconductors, Wireless and (to some extent) Biotech & Telecom companies are moving this market forward.  What did show up in the table is Emerging Markets (i.e. BRIC: Brazil, Russia, India, China).  China & Brazil are key factors right now and perhaps the weaker U.S. Dollar.  But . .  we still see Utilities Holding strong.

Not much more to comment on right now.  I’m about 80% invested Long and will phase more into this market over the coming week IF it continues to strengthen, hopefully broadening leadership.  Have a good week.   …….. Tom  ………

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.