Once again, don’t be fooled by the major indexes, which all showed impressive rises on the week owing to the influence of just a few mega-stocks. Actual stock performance in the broad market was very mixed, with about equal numbers declining as advancing. 

This offset remains due to competing investor opinions as to whether economic conditions are steadily improving or just about to decline on commercial real estate troubles. 

Our stocks were similarly mixed – some long gainers, though mostly modest, as well as some slumpers. Our short positions declined or remained static. 

Many more earnings reports next week may shed more light on which investor group holds the correct opinion. 

At least for now, the institutional investors seem to be among the optimists, as the many stocks that declined in price did not yet trigger sell signals per our analytics, suggesting once again the sellers were likely the less intelligent small retail investors, who are frequently terrible market timers. 


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