The Bottom Line

Posted by Don Vialoux - Timing the Market

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Now is a time for caution in equity market. Special situations are available as indicated below. A healthy weight in cash and cash equivalents makes sense between now and the end of September.

Economic News This Week

July Consumer Prices to be released at 8:30 AM EDT on Tuesday are expected to increase 0.1% versus a gain of 0.3% in June.Excluding food and energy, July CPI is expected to increase 0.1% versus a gain of 0.1% in June.

July Housing Starts to be released at 8:30 AM EDT on Tuesday are expected to increase to 964,000 from 893,000 in June.

FOMC Meeting Minutes from the July 30th meeting are expected to be released at 2:00 PM EDT on Wednesday

Initial Weekly Jobless Claims to be released at 8:30 AM EDT on Thursday are expected to fall to 308,000 from 311,000 last week.

July Existing Home Sales to be released at 8:30 AM EDT on Friday are expected to slip to 5.00 million units from 5.04 million units in June.

Canadian June Retail Sales to be released at 8:30 AM EDT on Friday are expected to increase 0.4% versus a gain of 0.7% in May.

Canadian July Consumer Prices are expected to slip 0.1% versus a gain of 0.1% in June.

August Philadelphia Fed to be released at 10:00 AM EDT on Friday is expected to fall to 15.5 from 23.9 in July.

July Leading Economic Indicators to be released at 10:00 AM EDT on Friday are expected to increase 0.7% versus a gain of 0.3% in June.

Equity Trends

Summary of Weekly Seasonal/Technical Parameters for Equity Indices/ETFs

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Key:

Seasonal: Positive, Negative or Neutral on a relative basis applying EquityClock.com charts

Trend: Up, Down or Neutral

Strength relative to the S&P 500 Index: Positive, Negative or Neutral

Momentum based on an average of Stochastics, RSI and MACD: Up, Down or Mixed

Twenty Day Moving Average: Above, Below

Green: Upgrade or higher

Red: Downgrade or lower

The S&P 500 Index gained 23.47 points (1.22%) last week. Intermediate trend remains down. The Index moved above its 20 day moving average. Short term momentum indicators are trending up. Note that the Index recovered to its breakdown level where resistance was encountered.

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…..go HERE and scroll down for Don’s analysis of the TSE & 45 other indices and charts including seasonality