May 13th Weekly Market Update
The overall stock market has only seen a couple of 2-3% dips this year, but there have been 5-10% pullbacks among cyclical sectors. It may be time to begin to buy some of the laggard cyclicals, especially on any pullback in the overall market.
Will stocks have a pullback? Eventually sure — but when? This past Friday, May 10, 2013 marked 176 days since a 5%+ pullback in the S&P 500, tying the record for stretches without a pullback in this 50-month-old bull market, so it may be close. Also, in the spring of each of the past three years, a stock market slide of 10 – 19% began, and the S&P 500 is about 11% above the 200-day moving average, as it was ahead of each of those slides. These indicators suggest the stock market may be due for a pause or a pullback.
For the full article: The Rally Is Getting Old, but a New Trend May Be Emerging