Market Risk Report as of February 22, 2021

From Chief Investment Officer Tom Veale,

“It gives me no pleasure to record 31 weeks of bearish Market Risk Indicator readings. This week the MRI rose another point to 43 with an MRI Oscillator value of +2 (mild upward risk pressure). It feels like we’re witnessing the end of a manic period of investing. If the markets are truly bi-polar sometimes, the next part of market history might not be as much fun.”

“Three MRI components dropped slightly in their own risk ranges while one ticked up slightly. We still have three in bearish territory and one in its own bullish range. We did note last week the previously strong Advance/Decline ratio sagged to be mildly less enthusiastic with declining stocks out-pacing advancers by a small margin. For the most part market indexes were flattish with the NASDAQ slightly down for the week. We continue to seek and execute profit harvest opportunities as they occur. We noted the pace of the harvest slowed last week as the markets seem to pause briefly. Good news on the C-19 front continues with the percentage of the population either immune through previous infection or through anti-viral injection continues to climb. First Trust has been creating a weekly Coronavirus update for a while. This link will take you to the latest one: COVID-19 Tracker (ftportfolios.com) . Improving trends are showing up in this latest bulletin.”

Best Regards,

Tom Veale