market folly

According to his weekly commentary, market strategist Jeff Saut is worried about recent market action. His worry, it seems, largely stems from the 1320 level on the S&P 500 which he sees as an important "attractor/repellor" level. Since the market has fallen below 1320, it has tried (and failed) three times to recapture it.

Just last week, Saut highlighted the biggest fears of 15 European portfolio managers. There is no doubt that caution seems to be the word of the summer. While Saut has not given up on the notion that the economic backdrop is set to improve, he does not like the current market action.

In order for him to give up on his optimistic/bullish call, he says he would need to see the S&P fall below 1295; a level that can easily be reached with one more sour day of market action.

Embedded below is Jeff Saut's latest weekly commentary:



You can download a .pdf copy here.

Saut mentions a few stocks in the missive above, but you can also see his current list of favorite stocks as well.