Despite the negative price action the SP500 did still manage to hold its rising 20 WMA as well as the retest of the prior high from 2007 at 1,575
So a slightly more positive view than we could have after Thursday's meltdown. Still this is the last thing standing in the correction's path. If this week's low fails to hold in the coming weeks, then everything we discussed in Thursday night's post will be in play.
As things are beginning to break down I was impressed with how our portfolio holdings performed this week. While we did lose one position (DDD) and there are a few more on the fence, several performed very well relative to the overall market. And considering the aggressiveness of the sell off, we still hold 11 positions. I would say our stocks are continuing to show that they are market leaders. I am concerned with the short term health of the markets here, but since we take a longer-term view with our holdings, that time-frame has not been damaged all that much. Short-term things are dicey at best, but longer term we are still in a bull market.
Review of Holdings
Currently invested in:
XLF, XLY, XLK, XLI, XLE, XLV
HD, F, WFC, PBW, HAIN
XLB, XLP, XLU
AAPL, ENB, MOS, CMI, DDD
Discretionary will be a space to watch very closely this coming week as it has broken its near term trend support. A close below its 20 WMA will be our stop. Relatively it is still outperforming, so as long as its above about $54 we will stick with it.
All in all a decent hold from our positions. I find it very interesting that Financials and Industrials were the two strongest sectors in terms of relative outperformance this week. Typically when the markets get hit, those "riskier" groups are the ones who take a major pounding. But looking around this week Staples, Utilities, Bonds...Those were the groups that got crushed; silver lining to a troubling start to summer. Now we just have to wait as see if the markets can hold onto their intermediate support levels.