Sunday, August 30, 2015 01:38pm
North Adams, MA now: 79 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
LOG IN | REGISTER NOW   

Home About Archives RSS Feed
@theMarket: Flirting With Record Highs — Again
By Bill Schmick On: 07:31AM / Saturday May 24, 2014

You can't keep a good market down, so why is everyone so darn worried about the stock market? Could it be that too much of a good thing may be dangerous to your financial health? If so, someone should tell the bulls.

Truly, no one should be complaining. Here we are at the end of May, normally a month where the markets come under selling pressure, and we are a mere five points away from the S&P 500 Index's all-time high. The contrarian in me says that too many people are waiting for the shoe to drop right now, so it probably won't.

Officially, it is the Memorial Day weekend that kicks off the herd migration from Wall Street's gray canyons and valleys to more amenable vistas. Highly-polished Wing-tips are exchanged for Gucci sandals, as the high and mighty head for the over-crowded beaches and multimillion dollar "cottages" of Long Island and the Hamptons.

Those who remain are the young and ambitious. Without much trading authority, they will have a hard time moving markets. Nonetheless, they will attempt to make a killing for their bosses at the expense of the rest of us. As market volume dries up this summer, it is a toss-up on whether markets become even more volatile or simply wallow in apathy and neglect.

In my career, I have seen both during the summer doldrums. In recent years, the markets have tended to be more volatile with fairly large declines in June and July. In other periods, you could hear a pin drop for weeks at a time on New York trading floors. I'm betting we see more volatility than less.

While the markets continue to grind higher so does the short interest in the stock market.

Short interest is the quantity of stock shares that investors have sold short but not yet covered or closed out. Many strategists use short interest as a market-sentiment indicator, since it indicates how many investors think a stock's price (or market) is likely to fall. Both the short interest aggregate dollar amount of the S&P 500 Index and short interest ratio (days to cover or buy back these shorts) are at levels not seen since mid-2007. We all know how that ended for investors.

The markets continued to make new highs until the end of the year and then subsequently crashed in 2008-2009.

Last week the markets touched my S&P 500 Index target of 1,900 — briefly. It was so quick that I half hoped we would make another stab at that level and possibly break it. It appears we are trying to accomplish that as I write this. Markets are never neat and tidy so if we break this level to the upside, I would expect a bout of short-covering which could propel the markets higher by another 20-40 points quickly. At the same time, I think too many people are bearish for a sell-off right here and now. If we were to see a fast jump higher and a panic stampede into the market at that time we just might be set up for a last hurrah.

Have a happy Memorial Day weekend. But while you are grilling, swimming or just plain having fun, do me a favor. Take a moment to remember our servicemen and women both past and present. I know I will be remembering my buddies in Vietnam that didn't make it. Semper Fi

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.



0 Comments
     
News Headlines
Cornerstone Completes Sweep in BABL Final
Habitat For Humanity Cuts Ribbon On New 'ReStore'
Adams Aces Take Lead in BABL Final
Revised Proposal For New Pittsfield Dunkin Would Spare Church Building
Lanesborough Elementary School Bus Routes 2015
Retiring Clark Art Director Leaves Lasting Impression
Adams & Cheshire School Bus Route 2015
McCann Technical School Bus Routes 2015
Williams College Class of 2019 Set to Arrive Aug. 31
YMCA Accepting Registration for Elementary School-Age Programs

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (177)
Independent Investor (241)
Archives:
August 2015 (5)
August 2014 (1)
July 2015 (6)
June 2015 (8)
May 2015 (6)
April 2015 (8)
March 2015 (6)
February 2015 (7)
January 2015 (9)
December 2014 (7)
November 2014 (4)
October 2014 (9)
September 2014 (5)
Tags:
Europe Deficit Stocks Debt Bailout Fed Stimulus Pullback Economy Euro Rally Metals Jobs Crisis Banks Energy Interest Rates Selloff Debt Ceiling Europe Oil Commodities Stock Market Housing Currency Retirement Federal Reserve Taxes Japan Election Congress Markets Greece Fiscal Cliff Recession
Popular Entries:
The Independent Investor: Don't Fight the Fed
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: QE II Supports the Markets
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
@theMarket: Markets Are Supposed to Pullback
The Independent Investor: Not All Bonds Are the Same
The Independent Investor: The Risk of Rising Rates
The Independent Investor: Boomers' Kids Don't Want Your Stuff
@theMarket: Month-End Musings
The Independent Investor: Supermarkets Evolve to Survive
The Independent Investor: Are You Ready for El Niño
@theMarket: O Ye of Little Faith
The Independent Investor: When 'No' Means 'Yes'
@theMarket: Global Markets Weather a Wild Week


Live on the Lake: Madison...
Madison Avenue wrapped up the 2015 Live on the Lake concert...
Whitman's Wins Torchia League...
The Pat Torchia Women's Softball League playoffs concluded...
Berkshires Craft Beer Fest...
The 9th annual Western Mass beer festival drew hundreds of...
Pat Torchia Women's Softball...
Whitman's took the first game in the best two out of three...
Third Thursday August 2015
It was another beautiful night for 3rd Thursday on North...
Berkshire Chamber @ Darrow...
The Berkshire Chamber of Commerce held its monthly...
Shire City Sessions August...
Wild Adriatic performs at Monday's Shire City Sessions, a...
BYP Networking @WTF
The Berkshire Young Professionals held its networking event...
Softball: VFW Post vs Pizza...
VFW Post vs Pizza House at DiSanti field on Monday night.
Second Cheshire Block Party
Cheshire resident enjoyed good food and music by the...
Downtown Celebration 2015
The annual Downtown Celebration brought hundreds to Main...
Pittsfield Ethnic Fair
Pittsfield Ethnic Fair was held at the Pittsfield Common on...
Annual Cruz Nite And...
Cheshire residents enjoyed classic cars, good food, a BMX...
Adams National Night Out 2015
Adams recognized its first responders on Tuesday night...
National Night Out 2015
Neighborhoods in North Adams marked the annual National...
Adams Aggie Demo Derby 2015
Crash! Boom! Bang! The annual Aggie Fair demolition derby...
Live on the Lake: Madison...
Madison Avenue wrapped up the 2015 Live on the Lake concert...
Whitman's Wins Torchia League...
The Pat Torchia Women's Softball League playoffs concluded...
Berkshires Craft Beer Fest...
The 9th annual Western Mass beer festival drew hundreds of...
Pat Torchia Women's Softball...
Whitman's took the first game in the best two out of three...
Third Thursday August 2015
It was another beautiful night for 3rd Thursday on North...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings |
Advertise | Recommend This Page | Help Contact Us
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2012 Boxcar Media LLC - All rights reserved

Privacy Policy| User Agreement