Market Strategist Jeff Saut: Short-Term Conflicted, Long-Term Bullish
From market folly January 8, 2013 - 11:41am
It's been a while since we checked in on market strategist Jeff Saut, so now that the new year is upon us, let's see how he's positioned and approaching this market. His latest commentary, entitled "White Noise?" talks about how investors need to filter out the daily noise they hear from media.
As far as his positioning goes, Saut notes that "I am currently short-term conflicted. While the long-term case remains strongly bullish based on a more collegial Congress, a continuation of the housing boom, strengthening auto sales, improving employment, low inflation, liquidity, etc, the short-term is becoming suspect."
The reasons for his short-term concern stem from the McClellan Oscillator remaining overbought and the fact that highly shorted stocks rallied profusely (implying a massive short squeeze in some of these popular shorts).
He thinks the rally will stall at certain ...