TGIF

A tough week on Wall Street comes to an end. Virtually all of the major stock indices dropped in a slow torturous way. Even the best performing Utility index faded. To highlight the difficult market conditions, the following actions/reactions were notable:

A potentially large terror threat via the airlines was foiled on Thursday. Initially, most of the airlines were hit hard but many rallied nicely off their lows. No doubt this encouraged some investors but, on second thought, the news probably serves to make air travel even more tedious and restrictive than it had become. Today many of the airlines gave ground and closed lower putting the group under more pressure than it was already experiencing.

Cisco reported better than expected numbers and it's share price jumped smartly Wednesday. Most of the gains remained by today's close. However, few stocks in the technology space responded to this good news and that group remains under pressure.

Of course, the Fed's inaction Friday was no cause to rally.

For the week, the volume was below average and market breadth deteriorated. Clearly, it's summertime. Our long only strategies continue to remain overweight in cash/equivalents and short term bonds with a lesser emphasis on stocks. It's one of the few times when overweight feels good!

For further information on our investment philosophy and strategies, please visit our website at www.GellerCapital.com.