The State of the Markets
Monday, January 6, 2014

While most pundits came into 2014 looking for the year-end ramp to continue, stocks have started off the New Year on the wrong foot so far. And with so much attention paid to the action in the S&P 500 (NYSE: SPY) for the first five days of January (“As the first five days go, so goes January” and “As January goes, so goes the year”) the key question coming into 2014’s first real week of trading is if the environment has taken a turn for the worse.

The short answer here is it that it is simply too soon to tell for sure. However, we have been yammering on for a while now about the idea that investors may need to have their risk management systems switched to the “on” position at some point in the first quarter. Thus, the action in the coming week ought to be quite telling.

But given that there is a lot of data to review and a lot of algos to be run before the picture becomes clear, this is probably as good a time as any to finish up the series on the lessons investors should have learned in 2013. So, without further ado…

Read the rest of the report…


David Moenning

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David Moenning is the founder and chief investment strategist for, a website dedicated to investor education and portfolio analysis. Mr. Moenning is also President of Heritage Capital Management, a privately owned, investment management firm. Founded in 1989, Heritage is focuses on risk management and an “own the best and ignore the rest” equity selection strategy.

For up to the minute updates on the market’s driving forces, Follow Me on Twitter: @StateDave (Twitter is the new Ticker Tape)

Positions in stocks mentioned: none

The opinions and forecasts expressed are those of David Moenning, President of Heritage Capital Management (HCM) and may not actually come to pass. Mr. Moenning’s opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security or Heritage Capital program. No part of this material is intended as an investment recommendation. Neither the information nor any opinion expressed constitutes a solicitation to purchase or sell securities or any of HCM’s programs. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that investment objectives outlined will actually come to pass. Investors should consult an Investment Professional before investing in any investment program. Neither Mr. Moenning or Heritage Capital Management nor any of their employees shall have any liability for any loss sustained by anyone who has relied on the information contained herein. Mr. Moenning and employees of HCM may at times have positions in the securities referred to and may make purchases or sales of these securities while this publication is in circulation. The analysis contained is based on both technical and fundamental research. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.