New Record High, Interest Rates & CPC Investor Sentiment Indicator

Weekend Market Update

 After making bear market lows, down 20% or more during the Christmas Holiday, the four major US stock market indexes soared such that they are only down between 2.99% and 8.70% from their record highs.

The "Explore Portfolio" covered in Kirk Lindstrom's Investment Letter today closed at another record high!

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Interest rates are up but still very low on an historical basis.

After doing a lot of buying around the holidays when the markets were near their lows, my CPC Put/Call sentiment indicator is now well into the "take profits" zone.

To understand more about my method, please read these KEY articles:

• Make Money In A Flat Market With Asset Allocation & Market Volatility
  
• Winning the Zigs, losing on the Zags - Why small investors usually do poorly
  
• Be Your Own Financial Advisor - Save The High Fees!

Discuss this article on my "Investing for the long term" Facebook group. 

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New Record Highs After Fed Chairman Powell says The US Economy is Strong!

Today, three of the four major US stock market indexes I follow closed at new record highs.

In Jackson Hole, Wyoming this morning Fed chairman Jerome Powell said the strong US economy justifies raising interest rates, but in a gradual fashion.  Most take this to mean the Fed will raise rates in September and perhaps once more before the year ends. 

From "Monetary Policy in a Changing Economy"  Transcript

“As the most recent FOMC statement indicates, if the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate will likely be appropriate. 

The economy is strong. Inflation is near our 2 percent objective, and most people who want a job are finding one. My colleagues and I are carefully monitoring incoming data, and we are setting policy to do what monetary policy can do to support continued growth, a strong labor market, and inflation near 2 percent.”

This expected 0.25% rate increase in September would bring the Fed Funds rate to a range of 2.00% to 2.25% from its current range of 1.75% to 2.00%.

I discussed this in my latest newsletter and Timer Digest wrote about it this weekend:

my commentary

Here are charts of the four major US stock market indexes I track showing that in fact the markets were happy with the Fed raising rates.

To get my "Special Email Alerts" and the "Auto Buy Sell Table" where I list ahead of time what stocks I will buy at what prices during declines and what I will sell during the advances. These buys and sells are at preset target prices you can use to set limit orders at your broker.

Kirk Lindstrom's Investment Letter

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More about Timer Digest: "Timer Digest monitors over 100 of the leading market timing models, ranking the top stock, bond, and gold timing according to the performance of their recommendations over various periods of time. Timer Digest profiles many of the Top Investment and Financial Newsletter writers, including discussions of their timing models."

Treasury Bond Rates vs the Fed Funds rate

May Day Marks a Record High for the Nasdaq and My Explore Portfolio

New record highs were made today for the Nasdaq and my Explore Portfolio.

Most other markets are less than 1% from their record highs also.

Of course, I've been taking profits as my stocks make record highs and have bought back shares in a few that are "out of sync" and in correction mode as investors are chasing large cap Nasdaq names.

My hybrid 2CS model is suggesting caution soon.... Do you have your list of stocks to buy or add to when the market corrects?

Kirk Lindstrom's Investment Letter:

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My Core and Explore Performance vs Warren Buffett's BRKA: