2010 Challenges Met; SP 500 1,256 Now Cleared

By: Chris Ciovacco | Mon, Jan 3, 2011
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Looking at full-year 2010 returns in hind sight, it may appear as if 2010 was an easy year to make money. Those who are honest with themselves can recall the incessant chatter of gloom and doom and high levels of fear following the May 2010 'flash crash' and sovereign debt problems in Europe. After publishing Stocks May Surprise By Year-End on July 2nd, we got a few less-than-friendly emails questioning our sanity.

S&P500

Fortunately, our market models (BMSI, 80-20) and historical studies enabled us to maintain some exposure to risk assets during a very difficult period.

S&P500

Over the last few weeks, the inability of the S&P 500 futures to hold above 1,256 was of short-term concern. On November 5th with the S&P 500 at 1,224, we thought 1,256 was a reasonable short-term target. Once 1,256 was reached in December 2010, the S&P 500 futures had a difficult time holding above 1,256. As we kick off 2011, the futures sit currently at 1,263, which may clear the way for another push higher in stocks and inflation-friendly assets. Over the next few weeks, it is important that we keep an eye on investor sentiment.

 


 

Chris Ciovacco

Author: Chris Ciovacco

Chris Ciovacco
Ciovacco Capital Management

Chris Ciovacco

Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC. More on the web at www.ciovaccocapital.com.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Investment recommendations may change and readers are urged to check with their investment counselors and tax advisors before making any investment decisions. Opinions expressed in these reports may change without prior notice. This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is not necessarily a guide to future performance. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. All prices and yields contained in this report are subject to change without notice. This information is based on hypothetical assumptions and is intended for illustrative purposes only. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION CONTAINED IN THIS ARTICLE.

Ciovacco Capital Management, LLC is an independent money management firm based in Atlanta, Georgia. CCM helps individual investors and businesses, large & small; achieve improved investment results via research and globally diversified investment portfolios. Since we are a fee-based firm, our only objective is to help you protect and grow your assets. Our long-term, theme-oriented, buy-and-hold approach allows for portfolio rebalancing from time to time to adjust to new opportunities or changing market conditions.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/