The equity markets sit at an important juncture. Consolidation of recent gains have exhibited signs of divergence and deteriorating market breadth. Is it merely the summer doldrums or (as the Wave Theorists would argue) an impending correction? Since we don't trade in anticipation of a trend change (preferring instead to see price confirmation of a trend change), we will remain cautious. Longs have been hedged with covered calls and appropriate stops, and some index shorts (for an overall neutral stance). We will refrain from adding longs except for high-volume break-outs (select healthcare/pharmaceutical issues have shown recent signs of strength).
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About Me
- Robert Palmerton, CMT
- Bob Palmerton founded Baseline Analytics in October, 2005. Bob received his MBA in Finance from the University of Michigan, a BA in Economics summa cum laude at Fordham University in New York, and is a Member of the Market Technician’s Association (MTA) in New York City, where he was awarded the Chartered Market Technician (CMT) designation. Bob is also a member of the Technical Securities Analysts Association (TSAA) and the Detroit Metastock User's Group. In 2010, Mr. Palmerton co-founded The Absolute Return, LLC., an investment advisor registered in multiple states, offering investors a choice of several "absolute return" portfolios.
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