Friday was the 31st of July; the last trading day of the month. What did major market traders think of it? I long ago learned they measure the S&P 500 with a simple 17-month moving average, and just watch how it trades during the following month. The 500 closed July at 2103.84, and calculates to be 4.4% above it’s 17-month moving average, which is at 2012.60. As far as the really “Big Boys” are concerned, this is still a Bull market, and they have every intention of holding their position in their S&P 500 futures contracts thru the month of August. Only if August proves to be, once again, the difficult month that it historically can be, and closes the month beneath this moving average, will they be getting out.
Further, the S&P 500 closed above its own 50-day moving average, and while that average is not presently up-trending, it is still above the 500’s 200-day moving average, which is up-trending. So, by the very most common measures of what constitutes a Bull Market, these two simple moving average systems say that it is an ongoing Bull Market of some 6+ years in age now, and so, we will be staying with it as well.
Now, as you may know. I don’t intend to sell when we identify a Bear Market, as I am investing to grow a portfolio dividend income. A Bear Market would be a safe-dividend investor’s dream! Just imagine, being able to accumulate more shares at upwards of 50% off! Buying shares at twice their current yield! Adding twice as many shares for the money I’d be putting in… why, a Bear would so accelerate the compounding of our portfolio dividend income growth, I’d be giddy with joy, and beside myself with delight!
Which reminds me… we should be seeing our July brokerage statements anytime now! Who paid us in July? How much did they pay? How much greater was our July income this year, over our July income last year? What kind of growth is that? As soon as I know, I’ll let you know. You need to be doing the very same thing! And, you really need to be getting your children and grandchildren doing this just as soon as they can possibly start. After all, you’ll be able to tell them what my father used to say to me,… “Make a lot of money, so you can support me in my old age in the manner to which I’ve grown accustomed!” Haha!
Here’s to your successful investing!
Harold F Crowell