In this update, we’re going to discuss the most recent market timing signals from the Expert system within our Trading Expert Pro platform.
On your screen is a daily chart of the Dow Jones Industrial Average with a price phase indicator underneath, displaying Heiken Ashi-mode candles. The green bars indicate an uptrend, red bars show a downtrend, and the bars that are neither green nor red are based on a color study indicating a high market rating. To explain these market ratings: over 400 rules run through an inference engine—a decision tree process where 400 different indicator states are evaluated. When one rule fires, it triggers the evaluation of certain other rules. These decision pathways contribute to a high expert rating, either up or down, which can signal a change in market direction.
The expert rules are based on historical Dow Jones price action and the internals of the New York Stock Exchange, such as new highs, new lows, and advancing/declining issues, evaluated using numerous indicators. Every day, we generate an expert rating. Most ratings are neutral, meaning few or no rules fired. For instance, on June 4th of this year, the rating was neutral. Once the rules’ weighting reaches beyond 95 up or down, it’s a significant level. On the price chart, buy and sell points are indicated for ratings greater than 95. I’ve marked only the first in a batch of signals; subsequent signals reinforce the initial one. For example, a sell signal is marked by a yellow bar indicating a 96 down rating, signifying importance. Each day, an expert rating is shown on the chart. Scrolling forward, you’ll see the numbers change. White bars indicate a 95 or greater up signal, while yellow bars show a 95 or greater down signal.
The charts are annotated with buy and sell signals. When multiple buy signals occur, we focus on the first one, with subsequent signals reinforcing it. The same applies to sell signals. We haven’t updated these market timing signals in a while. Starting back in late February 2024, there was a buy signal on February 22nd, indicating a 95 rating for the upside. The rules contributing to this signal include the advanced decline oscillator turning positive, viewed as bullish in the market. The New York breadth data’s new high/low indicator reversing to the upside also supports this bullish signal. Price action moved up slightly before flattening out, followed by a sell signal. Examining the sell signal rules, volume accumulation percentages decreased, and the stochastic moved below the 80% line, indicating bearish conditions. Buy and sell signals appear consistently, with some leading to short-term gains.
Recently, on June 6th, there was another sell signal, reinforcing a previous one. Rules indicated negative shifts in the advanced decline line and up-down volume oscillator. These strong signals suggest a continued downtrend. The system, tested over 37 years, uses an inference engine decision tree process, providing standardized market analysis.
For a closer look, visit aiqsystems.com and try our service for a month for just $1, including end-of-day data. This system’s consistency over the years speaks for itself. https://aiqeducation.com/1-trial/
Recording of FREE 90-minute AIQ Zoom meet on September 7, 2023.
In this 90-minute session, Steve Hill, CEO of AIQ Systems looked at Market Timing based on Sector Rotation + David Wozniak of TFR will cover a Mid-Year Market Forecast
Please note due to recording issues the first 5 minutes of the session has some external noise.
The stock markets continue to rise over the last month with the Value sector leading the way. The energy, financial, airlines, cruise ship sector and more have followed right along the last few months as well. Over the short term the Value sector still looks good going forward with the recovery of the economy and the realization that the Covid 19 virus will soon subside. I still like the growth sector involving technology over the longer term, but the sector that should outperform shorter term as the economy is recovering is the value sector. On the Bartometer at the end of last year I thought the S&P 500 would hit 4200-4400. As of Friday the S&P was 4094. My AIQ Trading Expert and my other technical computer algorithms are still at a BUY-HOLD signal. Remember that this market is very overvalued and is selling at 24 times earnings, and is currently 21% overvalued based on earnings and interest rates.. Earnings growth has to be great for this market to continue higher.
Interest rates have climbed to the 1.7% level on the 10-year government bond. Bonds, in general, have fallen this year from 0-to 13%, with Floating rate bonds actually rising 2% in 2021. Floating rate bonds and variable interest rate bonds both pay a higher rate as interest rates rise. The interest rate rise over the short term should be more subdued based on Federal Chairman Reserve Powell’s testimony that he is dovish on interest rate rises. I believe over the longer term with the deficit continuing to rise that the market will push interest rates higher. I also believe that inflationary pressures will also push the need for interest rates to rise over the next year or two. Allocations for bonds in your portfolio should be more concentrated in shorter duration, and in the floating rate bond sector/ Treasury inflation-protected Strips or TIPS. Please call me to strategize your portfolio holistically.
Some of the INDEXES of the markets both equities and interest rates are below. The source is Morningstar.com up until April 09, 2021.
Dow Jones +10.97% S&P 500 +10.0% EQUAL WEIGHTED S&P 500 +14% NASDAQ Aggressive growth +7.58% Large Cap Value +9.68% I Shares Russell 2000 ETF (IWM) Small cap +13.34% Midcap stock funds +14.0% International Index (MSCI – EAFE ex USA +9% International Emerging Markets +3.6% Financial stocks +13% Energy stocks +28% Healthcare Stocks +.9% Moderate Mutual Fund Investment Grade Bonds (AAA) Long duration +5.1% High Yield Merrill Lynch High Yield Index +1.4% Floating Rate Bond Funds +1.7% Short Term Bond +.0% Multi sector bond funds +.3% Gold -8.43% Long Term 20 year Bond fund -12% 10 year Bond Yield 1.62%
Classicalprinciples.com and Robert Genetskis Excerpts
Market Outlook
Stocks turned in a mixed performance this past week. The Nasdaq and QQQs had the biggest gains while the S&P500 and Dow rose to new all-time highs. In contrast, small-cap stocks fell ½%. Weekly moves show stocks rotating into and out of different areas, while the overall market trend continues to be positive.
The main force behind the upward move is a highly expansive Fed policy. Monetary stimulus creates a surplus of liquidity for stocks and ignited gains in business activity. This week’s sharp reversal in longer-term interest rates provided another spark for sending prices higher
The Biden Administration tried to discourage investors by proposing more destructive policies. Investors were not discouraged. Cautious statements by some Democrats are viewed as a possible barrier to the more these destructive policy proposals. The Fed continues to add kindling to the inflationary fire and promises it will continue to do so. Although longer-term interest rates moved lower this past week, implied inflation expectations remain high. The implied inflation expectation is currently 2.3%. It is measured by subtracting the inflation-adjusted 10-year T-bond yield from the actual 10-year T-bond yield.
Although core inflation rates remain very low, the bond market expects higher inflation. The market is more reliable. As for stocks, the gains in the S&P500 move the index to 21% above fundamental value.
Stocks are overextended and the risks of a reversal, or at least a leveling off, are rising. In spite of the heightened risks and the likelihood for some temporary setback, ongoing monetary stimulus has the potential to continue to drive stock prices higher.
The market weighted S&P 500 which weights the largest companies like Apple, Microsoft, Google and more. This index is up 10% in 2021. 500 of the largest stocks in the USA are in this index. If you look to thchart above you will see an ASCENDING CHANNEL. An ascending channel is Bullish and if it breaks out above the top of the channel it can signal a Continuation of the move higher. Many times the market will top out at the top of the channel, right where it is now. If it breaks down below the channel then it can signal a possible trend change. There is a definite channel trend here HIGHER. But could have a short term setback here.
The indicator below the price chart is the MACD, or momentum indicator has turned to the upside, See the pink line breaking out of the blue line, another Bullish signal
The bottom indicator is SD-SK Stochastics is now above the 88 line and clearing shows an overbought situation in the stock market. Even though the market indicators are BULLISH, and 21% overvalued, we have to be wondering when all of this upside will stop. I thought 4200 to 4400 on the S&P 500. That is a 2-7% move from here. It can go higher than that, we will see. Earnings are coming out and if they show a clear cut blowout in earnings then the market should continue higher, but we have to keep aware of the overvalued nature of the market.
Chart Source: AIQsystems.com
Support levels
S&P 500 4040, 3919, 3870, 3655. NASDAQ 13,611, 13,472, 13012. Dow Jones 33280, 29280 These may be safer areas to get into the equity markets on support levels slowly on the accumulation areas.
THE BOTTOM LINE:
The market continues to look ok albeit very overvalued based on earnings and interest rates. I still think the market could reach my 4200-4400 or higher before the end of the year or higher and the economy should be higher than where we are today. I am worried that interest rates over the next year or so will be higher than 2% on the ten-year bond. Markets usually have a more serious correction if the 10-year bond goes above 2.75% to 3%. We are far from that point. I still like Value stocks for the short term and growth for the mid to long term as growth stocks is where the real growth in the economy should be. The NASDAQ stocks have underperformed for the year but, if you are longer-term investors then have a mix of growth and Value stocks or funds. I have been suggesting a higher percentage of small and midcap value and growth funds over the last 5 months and now the smaller stocks are overvalued and a reduction of smaller stocks may be in order. In addition, the Price to Earnings in the market is over 24 times earnings, this indicates a much-overvalued market. If you are within a year of retirement you may want to take some profits if you made money and wait for a better entry. It all depends on your goals and risk tolerance.
Best to all of you,
Joe Bartosiewicz, CFP® Investment Advisor Representative
Securities and advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012
If you have any questions, please call me at 860-940-7020. Joe Bartosiewicz, CFP® 92 High Street Thomaston, CT 06787 and 7501 East MCDowell RD #2172 Scottsdale, AZ 85257
Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor. Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.
The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.
Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.
NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.
A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio in different categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.
The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds
MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.
Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment-grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap US equities.
Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating-rate coupon U.S. Treasuries, which have a maturity greater than 12 months.
In many ways the markets imitate life. For example, the trend is your friend. You may enjoy your friendship with the trend for an indefinite length of time. But the moment you ignore it – or just simply take it for granted that this friendship is permanent, with no additional effort required on your part – that’s when the trouble starts.
For the stock market right now, the bullish trend is our friend. Figure 1 displays the 4 major indexes all above their respective – and rising – long-term moving averages. This is essentially the definition of a “bull market.”
In addition, a number of indicators that I follow have given bullish signals in the last 1 to 8 months. These often remain bullish for up to a year. So, for the record, with my trusted trend-following, oversold/thrust and seasonal indicators mostly all bullish I really have no choice but to be in the bullish camp.
Not that I am complaining mind you. But like everyone else, I try to keep my eyes open for potential signs of trouble. And of course, there are always some. One of the keys to long-term success in the stock market is determining when is the proper time to actually pay attention to the “scary stuff.” Because scary stuff can be way early or in other cases can turn out to be not that scary at all when you look a little closer.
So, let’s take a closer look at some of the scary stuff.
Valuations
Figure 2 displays an aggregate model of four separate measures of valuation. The intent is to gain some perspective as to whether stocks are overvalued, undervalued or somewhere in between.
Clearly the stock market is “overvalued” if looked at from a historical perspective. The only two higher readings preceded the tops in 1929 (the Dow subsequently lost -89% of its value during the Great Depression) and 2000 (the Nasdaq 100 subsequently lost -83% of its value).
Does this one matter? Absolutely. But here is what you need to know:
*Valuation IS NOT a timing indicator. Since breaking out to a new high in 1995 the stock market has spent most of the past 25 years in “overvalued” territory. During this time the Dow Industrials have increased 700%. So, the proper response at the first sign of overvaluation should NOT be “SELL.”
*However, ultimately valuation DOES matter.
Which leads directly to:
Jay’s Trading Maxim #44: If you are walking down the street and you trip and fall that’s one thing. If you are climbing a mountain and you trip and fall that is something else. And if you are gazing at the stars and don’t even realize that you are climbing a mountain and trip and fall – the only applicable phrase is “Look Out Below”.
So, the proper response is this: instead of walking along and staring at the stars, keep a close eye on the terrain directly in front of you. And watch out for cliffs.
Top 5 companies as a % of S&P 500 Index
At times through history certain stocks or groups of stocks catch “lightning in a bottle.” And when they do the advances are spectacular, enriching anyone who gets on board – unless they happen to get on board too late. Figure 3 displays the percentage of the S&P 500 Index market capitalization made up by JUST the 5 largest cap companies in the index at any given point in time.
Figure 3 – Top 5 stocks as a % of S&P 500 Index market cap (Courtesy: www.Bloomberg.com)
The anecdotal suggestion is pretty obvious. Following the market peak in 2000, the five stocks listed each took a pretty significant whack as shown in Figure 4.
Figure 4 – Top Stocks after the 2000 Peak
Then when we look at how far the line in Figure 3 has soared in 2020 the obvious inference is that the 5 stocks listed for 2020 are due to take a similar hit. And here is where it gets interesting. Are MSFT, AAPL, AMZN, GOOGL and FB due to lose a significant portion of their value in the years directly ahead?
Two thoughts:
*There is no way to know for sure until it happens
*That being said, my own personal option is “yes, of course they are”
But here is where the rubber meets the road: Am I presently playing the bearish side of these stocks? Nope. The trend is still bullish. Conversely, am I keeping a close eye and am I willing to play the bearish side of these stocks? Yup. But not until they – and the overall market – actually starts showing some actual cracks.
One Perspective on AAPL
Apple has been a dominant company for many years, since its inception really. Will it continue to be? I certainly would not bet against the ability of the company to innovate and grow its earnings and sales in the years ahead. Still timing – as they say – is everything. For what it is worth, Figure 5 displays the price-to-book value ratio for AAPL since January 1990.
Figure 5 – AAPL price-to-book value ratio (Data courtesy of Sentimentrader.com)
Anything jump out at you?
Now one can argue pretty compellingly that price-to-book value is not the way to value a leading technology company. And I probably agree – to a point. But I can’t help but look at Figure 5 and wonder if that point has possibly been exceeded.
Summary
Nothing in this piece is meant to make you “bearish” or feel compelled to sell stocks. For the record, I am still in the bullish camp. But while this information DOES NOT constitute a “call to action”, IT DOES constitute a “call to pay close attention.”
Bottom line: enjoy the bull market but DO NOT fall in love with it.
Jay Kaeppel
Disclaimer: The information, opinions and ideas expressed herein are for informational and educational purposes only and are based on research conducted and presented solely by the author. The information presented represents the views of the author only and does not constitute a complete description of any investment service. In addition, nothing presented herein should be construed as investment advice, as an advertisement or offering of investment advisory services, or as an offer to sell or a solicitation to buy any security. The data presented herein were obtained from various third-party sources. While the data is believed to be reliable, no representation is made as to, and no responsibility, warranty or liability is accepted for the accuracy or completeness of such information. International investments are subject to additional risks such as currency fluctuations, political instability and the potential for illiquid markets. Past performance is no guarantee of future results. There is risk of loss in all trading. Back tested performance does not represent actual performance and should not be interpreted as an indication of such performance. Also, back tested performance results have certain inherent limitations and differs from actual performance because it is achieved with the benefit of hindsight.
Well, the election is over and and if Trump doesn’t win the contested vote then Biden is President. My biggest concern going forward is the race in Georgia that could switch the control of the senate to the Democrats enabling them unchecked control in the government. If this happens, and Democrats get rid of the filibuster rule there could be volatily in the stock and bond markets because: It could increase taxes on corporations, raise capital gains taxes and estate taxes by reducing the couple estate tax exclusion from $11 million to $3.5 milllion.
If the Democrats don’t win then there will be gridlock, and gridlock meaning that many of the tax increases may not pass. We will see what happens on January 5th 2021. Currently my Technical Analysis computer is still on a Buy-Hold as of about a week to 2 weeks ago, but it changes daily.
The increases in the Covid 19 virus is again causing Governors in many states to restrict access to non-essential business. This will reduce earnings of many corporations but increase the earnings of technology companies that are benefitting by people using their goods and services from home. Once a safe and effective vaccine is created by either Pfizer or Moderna, and when people feel safe to travel/use the goods and services of non essential companies will they prevail. then the Value stocks, eg., the cruise lines, airlines, resorts, restaurants, retail, manufacturing, telecommunications and more should rise. Until that time, the market will be volatile.
We are now in a seasonally strong time for the stock markets, but with the overhang of the senate election in Georgia, and the increase in Covid 19 coupled with the upcoming Flu season, caution is still somewhat appropriate. For people who are more Cautious in general, but over the next 1-2 years I still think the market could go higher even though the market is about 6% overvalued mostly because of the technology stocks. When the pandemic is even close to nearing its conclusion, the Value sector should continue its rise. So, small, mid and large value stocks could be the bigger winner, and if we get a selloff because of Covid 19, I will be buying those sectors.
Some of the INDEXES of the markets both equities and interest rates are below. The source is Morningstar.com up until Novemeber 14, 2020. These are passive indexes.
Dow Jones +5.1% S&P 500 +12.2% EQUAL WEIGHTED S&P 500 +3.1% NASDAQ Aggressive growth +29% Large Cap Value -3.0% I Shares Russell 2000 ETF (IWM) Small cap +5.2% Midcap stock funds -4.66 International Index (MSCI – EAFE ex USA +2% Financial stocks -10% Energy stocks -36% Healthcare Stocks +11%
Moderate Mutual Fund Investment Grade Bonds (AAA) Long duration +6.5% igh Yield Merrill Lynch High Yield Index +1.9%
Floating Rate Bond Funds -.60% Short Term Bond +1.6% Mutli sector bond funds +2.3%
I do expect potential major volatility over the next few months if the Republicans lose the Senate.
Classicalprinicples.com and Robert Genetskis Excerpts
Market Outlook
Stocks were mixed this past week. The previously out-of-favor small caps rose 3%-4%, when the Nasdaq and QQQs fell 2%-3%. The Dow and S&P500 gained 1%-2%. I expect stocks to continue to consolidate within the range of the past five months. Biden’s choice of advisors is interesting. His Chief of Staff was the one in charge of fighting Ebola. He admitted they had made every mistake imaginable in that fight. Another medical advisor says the country should lock down for 4-6 weeks and can simply pay workers and businesses for lost income. Just what Biden needs… another advisor with no concept of economics feeding him mush. It’s important to pay attention to Biden’s advisors. Their ideas can provide a clue to just how crazy things can get. Hopefully, cooler heads will prevent the chaos that would result from such complete nonsense.
A Look Back
The latest weekly data show the labor market continues to improve in spite of Covid. Initial unemployment claims fell to 709,000 in the first week of this month. This is down about 140,000 from the previous month. For the final week in October, the insured unemployment rate fell to 4.6%, down from 7.5% from the previous month. The number of people receiving insured unemployment payments fell to 6.8 million. There were close to 11 million a month ago.
What to expect this coming week
Look for the economic numbers to continue to show the economy performing well. Tuesday’s report for manufacturing in October should be a strong one. Business surveys show manufacturing production increasing dramatically in October. Hence, the Fed’s manufacturing number should be up substantially.
Source: Classical Principles.com
S&P 500 Chart Source: AIQsystems.com
The S&P 500 is above. As you can see my computer models gave a BUY signal on 10/30/20 and another one a couple days later. Another Bullish sign is when it broke above the middle of the W pattern. This is BULLISH unless it breaks down below that breakout. Now it has to breakout from the old high of 3648. If it does with conviction volume watch the 3750 area for some resistance. But it has to breakout from 3648 with a lot of volume first.
We are now in a bullish seasonal pattern for the market. One year from now I think the economy will do much better than it is now and the markets should be higher as well.
MACD or Momentum is still Bullish as the pink line has broken out of the blue line showing positive momentum.
Support levels on the S&P 500 area are 3546, 3392-3405, 3306 and 3244. 3143 is 200 Day Moving average NASDAQ Support, 11621, 11300-11360, 11062. Resistance is 12075 These may be safer areas to get into the equity markets on support levels slowly on the accumulation areas.
THE BOTTOM LINE:
The market has rebounded nicely over the last month mainly because of earnings of companies beating expectations. The NASDAQ has done the best this year and should continue to do well IF the market continues higher. Now that the vaccine is a reality the value stocks should start to rise. You may want to call me to review everything including your 401(k) to determine the best allocation going forward. I like the USA market better than the international market.
Best to all of you,
Joe Bartosiewicz, CFP® Investment Advisor Representative
92 High Street
Thomaston, CT 06787
860-940-7020
Securities and advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012
Charts provided by AIQ Systems:
Technical Analysis is based on a study of historical price movements and past trend patterns. There is no assurance that these market changes or trends can or will be duplicated shortly. It logically follows that historical precedent does not guarantee future results. Conclusions expressed in the Technical Analysis section are personal opinions: and may not be construed as recommendations to buy or sell anything.
Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor.
Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.
The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.
Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.
NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.
A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio in different categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.
The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds
MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.
Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment-grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap US equities.
Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating-rate coupon U.S. Treasuries, which have a maturity greater than 12 months.
