Special Risk Capital Management LLC

Not Much Buying Demand October 5, 2019

Oct. 4, 2019 –  A pretty dismal week with a blip up on Friday.  The problem is the volume on Friday was very low, i.e. “No Demand”.  Looks like a simple short covering rally to me.  We are very close to the last swing low and the moment of truth is near.  Does this level hold (7663 support) or do we break down even lower.  It’s mixed and could be resolved via a news item.  But the US economy is slowing and with it corporate earnings.  The market is looking for stability and a good reason to rally back to the previous high.  With BREXIT and Impeachment looming in the background that doesn’t look all that great.  In addition, “price action” remains weak & “in the noise” without a clear direction.  (see last week for a description or in the “publications” page)

The market likes the idea of lower interest rates, but that usually means things are not that good and the economy needs help.  A double edged sword so to speak.

When you see government bonds, Utilities and Real Estate as strong sectors you know that (in the short term) things are not that great.  Here’s the table below:

Not much more to say.  I’m heavy in Cash with a light hedge on as insurance.  Have a good week.     ………… Tom …………

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