Strength is Risk

U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to:  positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to:  none
Mildly Unfavorable due to:  none
Unfavorable due to:  higher risk level (unch)

Today’s action:  indexes mixed, from -0.3% (Nasdaq 100) to 0.1% (Midcap 400).

No positive/strong sector changes from weak to strong.  No negative/weak sector changes.  Current streak 8 positive/strong sectors in 19 days.   Prior streaks are listed below, with most recent streaks listed last.  No positive/strong sectors close to changing to weak (unchanged).  No negative/weak sectors close to changing to strong  (unchanged).  Current phase volatility is low (unchanged).

Prior Streak Summary (listed oldest to newest):

Positive

• 11 in 6 days
• 8 in 5 days
• 8 in 4 days
• 40 in 15 days
• 2 in 2 days
• 3 in 6 days
• 2 in 3 days
• 6 in 5 days
• 15 in 10 days
• 31 in 9 days
• 2 in 11 days
• 3 in 6 days
• 6 in 14 days
• 8 in 10 days
• 11 in 15 days
• 1 in 1 day
• 23 in 24 days
• 33 in 43 days
• 1 in 2 days
• 7 in 6 days
• 21 in 9 days
• 1 in 2 days
• 1 in 6 days
• 23 in 5 days
• 3 in 8 days
• 27 in 51 days
• 8 in 19 days (CURRENT)

Negative

• 35 in 10 days
• 3 in 4 days
• 18 in 16 days
• 5 in 3 days
• 1 in 2 days
• 6 in 4 days
• 1 in 1 day
• 16 in 13 days
• 31 in 21 days
• 1 in 2 days
• 6 in 4 days
• 6 in 2 days
• 14 in 9 days
• 30 in 12 days
• 1 in 4 days
• 3 in 5 days
• 27 in 18 days
• 2 in 5 days
• 37 in 20 days
• 5 in 5 days
• 16 in 8 days
• 1 in 3 days
• 1 in 1 day
• 21 in 17 days
• 9 in 12 days

* The “U.S. Stock Environment Bottom Line” summarizes the overall current environment for initiating new long positions as measured by KLD’s three level environment assessment using its primary analysis (POSITIVE/NEGATIVE), secondary analysis (positive/negative), and long risk level analysis (higher, moderately higher, moderately lower, lower).  For perspective, the strongest reading — and, given that Strength is Risk, the highest risk environment to initiate long positions — is POSITIVE/positive/higher.  Weakest reading (thus lower risk environment to initiate long positions) is NEGATIVE/negative/lower.

The above is neither advice nor prediction and is provided for educational purposes only. It is simple reporting of action underlying the market index levels and indicates when enough stocks have moved far enough to impact sector strength readings. Whatever has caused this change may ultimately impact other stocks, other sectors, and the market index levels.  “Is” matters, “why” does not: by the time the reason(s) for this move become apparent, if ever, it will be too late to benefit from such knowledge.  Risk matters, target predictions do not: there is no telling how far will travel a market move up or down, better to focus on measuring risk and taking appropriate actions.