Date: August 27, 2014

Stocks Looking a Little Tired

The bull market remains alive and reasonably healthy. I am still long-term bullish. I am still fairly bullish over the intermediate-term.

With that out of the way, stocks are looking a little weary at all time highs, which should not be totally unexpected. The market has powered higher all month and started to struggle a bit of late. At least for now, I think risk equals reward or perhaps even slightly outweighs reward.

To refresh the rally, stocks can either decline over the coming few weeks or enter a sideways trading range for a few weeks to a month. Should the market continue higher here without participation remaining strong, I would have more intermediate-term concerns. For now, a mild, orderly and routine 2-5% pullback would be very welcome.

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Paul Schatz, President, Heritage Capital