Coolhand's Market Analysis

Last week, the Top 50 had a bond allocation (F fund) greater than 34% (not to mention a 29% cash allocation (G fund), which collectively speaking is quite high for this group. And that got my attention as I strongly suspected we'd see some downside action given those numbers. And it didn't take long to get it as Monday saw some rather intense selling pressure, which drove the S fund down more than 2%.

This week, the Top 50 increased their bond allocation by 3% to a total F fund allocation of 37.2%. Cash (G fund) also rose; from 29% to 43%. That dropped their total stock allocation to just 19.8%.

Given the potential of global market turmoil surrounding the Greek vote, I suppose I'm not surprised with the very conservative allocations.




As you can see, cash and bond allocations are up, while stock allocations are down for the Top 50.




The total tracker saw stock allocations drop after last week's volatile action by about 6% to a total stock allocation of 43.24%.

Our sentiment survey remained in a buy condition for yet another week and the Seven Sentinel also remain on a buy.

It's hard to say what may happen to global markets in the very short term, given the potential for headline shock after the Greek elections. I'll be watching futures for clues, but one thing I'm fairly certain of is that volatility is almost certainly going to be with us for awhile yet.