iStock_000010512581XSmall-International-Globe-300x199The good news is equities continue to trend higher.  Other than a small pull-back at the end of June and August, the advance has been linear, up and to the right.  The major indexes are near 52 week highs.  If you have been long U.S. equities all year long, 2013 has been a good year.  The bad news is if you have been under-invested in equities, it has been a frustrating experience as there have been few opportunities to put money to work on weakness.

September is historically the weakest month of the year for stocks.  Month-to-date, the S&P 500 is up 3.4%.  Short-term indicators suggest the market is overbought currently.  On weakness, we recommend putting new money to work in equities.  The Delta MSI is bullish and climbing.

While U.S. stocks are near 52 week highs, developed economy stocks measured by the ETF (PIZ) DWA Developed Markets Technical Leaders has clearly broken out to new two year highs.  We have seen better economic growth data from Japan and China.  It appears we are moving into a period of synchronized global growth.  If this is the case, we should expect the current bull market in U.S. equities to extend for some time.

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