Special Risk Capital Management LLC

A “Dull” Summer Market July 31, 2021

July 30, 2021 – Not a whole lot of movement this week. Yes, there was some anxious moments on Friday as Amazon dropped, but it’s not unusual for these growth type stocks to fall back to around their 50 day moving average. That’s (recently) been a reasonable place to buy into them. Well see early next week if that holds true. It would be an indication of the overall strength of this market.

Looking at the indicators above the price chart they are pretty neutral, and the trend channel is nearly horizontal as well. I’ve made some minor changes to the Support and Resistance level but the trend is fairly steady and straight across. Note that the trading volume (Below the price chart) is very low and drops off late in the week; a sign of summer vacations perhaps. 🙂 The short term sector table is shown below.

The Technology sectors are showing good strength and that’s a positive sign. The new comer is Basic Materials, particularly Steel & Copper. Signs of an improving economy.

The concerns about the Covid Delta virus remain an uncertainty and (again) the markets are richly valued so the “risk off” mentality is in control now. But there is plenty of liquidity thanks to the FED and low interest rates and for the time being there are not to many other places to place assets. I remain extra cautious, but also 75% invested for the time being.

Take Care & have a good week. ……… Tom ……….

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