The market averages seem to be starting summer early. We saw a broad-based sell-off this past week, after several weeks of positive movement. For now, this looks more like a pause (a breather) than the beginning of something substantial. Our signals are still flashing offense, so the upcoming few weeks may prove to be a good opportunity to put some additional cash to work in the market.
Many of the areas that have been working, like steel, commodities, and some pockets of the energy sector are pausing. Some areas are starting real pullbacks. Once these pullbacks unfold, we may see another opportunity in the energy and commodity sector. The point and figure charts I use still indicate that oil could head as high as the mid-$150/barrel range, so any serious pullback may be another good opportunity.
Of course, when conditions change, we will change. Stay tuned.
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