The S&P 500 Index (SPX) and Dow Jones Industrial Average (DJIA) continue to perform well. In my opinion, the reasons include some bond money going into equity and lots of money still in the money market. The longer term trend is still up but, in my opinion, a 4% to 7% pullback in stock prices may be just around the corner.

We are long  the S&P 500 and we like precious metals and technology.

My analysis indicates that all style boxes have positive momentum. Though I have no hard evidence to support this, my theory is that the best sectors are precious metals, financials, utilities, and then oil. The semiconductor sector is in a down trend.

In my opinion, the strongest international equity markets are: Germany, England, and then emerging markets.
