AI
| Followers | 71 |
| Posts | 12229 |
| Boards Moderated | 1 |
| Alias Born | 04/01/2000 |
Sunday, May 13, 2012 10:34:57 AM
Amateur Investors Weekend Stock Market Analysis (5/12/12)
http://www.amateur-investor.net/Weekend_Market_Analysis_May_12_2012.htm
The % of cash held by Mutual Funds remains at all time lows as the latest reading was 3.3% which is far below the long term average of 6.8% (black line). Prior to the last Secular Bull Market which began in the early 1980's notice Mutual Funds had quite a bit of cash on hand as the red line stayed above well above the 6.8% level. However since the late 1990's the % of Mutual Fund cash has stayed below the long term average as we have been witnessing a Secular Bear Market. With the % of Mutual Fund Cash at historic lows it's hard to imagine a new Secular Bull Market can develop until they begin to build up higher cash levels.
Finally it wouldn't be a big surprise if the S&P 500 eventually tests its longer term upward trend line (black line) this Summer in the mid 1240's. Notice this trend line also intersects the 23.6% Retracement Level calculated from the March 2009 of 667 to the recent 1422 high as well.
http://www.amateur-investor.net/Weekend_Market_Analysis_May_12_2012.htm
The % of cash held by Mutual Funds remains at all time lows as the latest reading was 3.3% which is far below the long term average of 6.8% (black line). Prior to the last Secular Bull Market which began in the early 1980's notice Mutual Funds had quite a bit of cash on hand as the red line stayed above well above the 6.8% level. However since the late 1990's the % of Mutual Fund cash has stayed below the long term average as we have been witnessing a Secular Bear Market. With the % of Mutual Fund Cash at historic lows it's hard to imagine a new Secular Bull Market can develop until they begin to build up higher cash levels.
Finally it wouldn't be a big surprise if the S&P 500 eventually tests its longer term upward trend line (black line) this Summer in the mid 1240's. Notice this trend line also intersects the 23.6% Retracement Level calculated from the March 2009 of 667 to the recent 1422 high as well.
Where Real Traders Talk Markets
Join thousands of traders sharing insights, catalysts, and charts.
