TimingCrystal

[teabull]

The major stock indices regained their footing this week and by most measures posted solid gains. Therefore, our Primary Trend remains, for the time being at least, firmly in bullish mode. The past week was highlighted on Friday by the US Government's release of solid employment data coupled with benign inflation readings and a decent manufacturing report in the form of the ISM. The economic backdrop is conducive to a continuation of an upward bias in stocks. However, we would caution that a one to two percent pullback in the major averages should come as no surprise to investors with longer-term investment horizon. In fact, we are most bothered by growing investor complacency that we believe, when at an extreme, will spell the end to this up leg in the ongoing US equity bull market. Furthermore, as bond yields rise and prices drop Asset Allocation managers may begin, quietly, shifting some of their investment capital into the relative safe haven of the debt market at the expense of equities.

Anthony Waller
President
Teabull Asset Timer Ltd
http://www.timingcrystal.com