Recoil Rally

The market has been very oversold for the past two weeks, so it did not take much of a spark (agree to agree on the fiscal cliff) to get things rolling. What we are observing here is a short term rally based on news for the political side but we need some confirmation from real economic indicators to verify if the correction is over.

One index I am keeping my eye on is the transports, without their participation in this rally then the spark could fizzle. However, I do not see much more of a selloff here anyway even if the transports still lag. Retail sells this weekend could add some fuel to the fire but the chicken hasn’t hatched yet or should I say turkey.

Therefore, I am remaining cautiously bullish due to the behavioral mode of investors that remain on the sidelines. My Santa Claus approach is, I am making a list of ideas and checking it twice so if this short term becomes long (concerning the recoil rally) we may find some sugar plums in our stockings.

Happy Thanksgiving


About billriley

Chief Executive Officer, Chief Compliance Officer A co-founder and shareholder, William Riley is a 33 year industry veteran, who observed, many years ago, that over time institutional investors typically outperform individual investors while accepting less risk. In his role as Chief Executive Officer, Bill works tirelessly to make the wealth management strategies used by the world’s wealthiest families and largest institutions available to our firm’s individual clients. Bill combines fundamental and technical analysis to minimize investment portfolio risk and maximize potential returns. He uses a variety of non-correlated asset classes, including alternative investments, to minimize portfolio volatility and seek absolute returns in down or flat markets. Finally, Bill believes in a comprehensive approach to wealth management that fully coordinates and seamlessly integrates portfolio management, risk management and asset protection, trust, estate, tax and charitable planning. Prior to co-founding Riley Wealth Management ,LLC, Bill held management positions at Merrill Lynch, UBS, Raymond James, Paine Webber and J.C. Bradford. Bill founded Fort Worth branches for Raymond James and J.C. Bradford. Prior to entering the financial services industry, Bill ran his families closely held businesses. Bill’s experience operating family businesses combined with his wealth management experience makes him uniquely qualified to advise entrepreneurs and business owners on a variety of matters including complex and sensitive issues relating to business succession. Bill’s degrees and designations included a Masters Degree in Business Administration (MBA), the Chartered Financial Consultant designation (ChFC), the Chartered Life Underwriter designation (CLU) and the Wealth Management Specialist designation (WMS). A Fort Worth native, Bill is a TCU alum and active in many civic and charitable organizations. Bill and his wife, Marsha, now reside in Colleyville, and they have four grown children and four grandchildren. When he is not working on portfolios or studying financial markets, Bill can be found on the golf courses of Ridglea Country Club.
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