Market Looks Ready for a Pullback

Market Looks Ready for a Pullback

Posted on October 20, 2015

Weekly Update


Market State 9A (2 days) Transitional/Bearish: The Portfolio Thermostat’s has been in a Transitional/Bearish Market State for the past month.

Canterbury Volatility Index (CVI 97) Neutral: The number of trading days with large swings (up or down) of 1.5% or greater, have been decreasing over the last two weeks.

Overbought/Oversold indicator is currently 94% Overbought (Bearish): An overbought reading of 95% or higher is considered to be an extreme level.

Market Comment:

The S&P 500 was up .90% last week and is up 8% from the most recent low on September 28th. It is typical and expected to have sharp rallies during bearish Market State environments. Such rallies are typically followed by another leg down (market decline).

Bottom Line:

Investing for the long term requires effective risk management. This is particularly true during Transitional and Bearish Market State environments. The Portfolio Thermostat’s most important function is to create and maintain the most efficient portfolio thatmatches the existing market environment.

Canterbury Investment Management: Tom Hardin

More About Tom Hardin

As Chief Investment Officer, Tom has more than 30 years of experience in the investment management industry and has a broad breadth of knowledge. He is known as an innovator, educator and has been revolutionary in the advancements of portfolio and risk management.

Every effort was used to provide accurate data and mathematical calculations to provide, what we believe to be, accurate results. Canterbury Investment Management, LLC, and its principal owners, make no guarantee of completeness or accuracy of data or calculations as well as conclusions of any statistical data or information contained in the simulation illustrated on this page. Past results or performance is in no way a guarantee of future results.