Monday, June 17, 2013

Continue to Liquidate Stock Positions

There is a lot to discuss this morning, the Fed meeting coming up this week, the default in Detroit on unsecured unlimited-tax and limited-tax general-obligation bonds and what it means for the muni-market and why you should expect increasing volatility in US stock markets and bond markets, plus subscriber questions.

Overnight, U.S. stock futures advanced. Futures on the September  S&P 500 are up roughly 1%. The index lost 1 percent last week. It is down 2.5 percent from its May 21 record.

As I have explained in previous ALERTS, the current stock market structure can not be sustained, given that 3-month annualized money growth has declined from 11.4% to 3.6%. The current topping action is simply the market sucking in sideline money. Continue to use any upside action to liquidate stock positions.

To get today's full ALERT, where I discuss the upcoming Fed meeting, the muni-bond sector and warn as to what muni-debt may be next on the default block, subscribe here.


  1. does that include stocks where there is considerable losses (25-40%) but feel confident long-term of the ruling reason not being satisfied yet? I am most inclined to keep these stocks, as most are in the Energy sector, and the ETF tied to increasing Interest rates...

  2. The only problem is where to put cash generated. Its now clear MMF's can be subject to runs. Large sums in physical gold is not practicable for most people, insuring it would be expensive and otherwise it is subject to theft/loss. 3 or 6 month treasaury notes guarantee a real loss compounded each year. RE is manipulates, overseas markets will all swoon if America has a crash.