Indicators the Disciplined Investor is Watching March 15

Mar 17, 2010: 12:24 PM CST

It’s time for this week’s “Indicators the Disciplined Investor is Watching” from Andrew Horowitz – with this week’s update being titled:

Three Percent Mutual Fund Cash is Troubling.

Andrew pays special attention to the recent data that state mutual fund cash balance totaled 3.6% in both December and January – which is often a counter-indicator, suggesting that there’s not much more “sidelined” cash to keep driving this market higher as we’ve been seeing in the past.

In addition to showing plenty of other charts and indicators, Andrew writes:

“Of course, Abby Joseph Cohen (Goldman Sachs) still believes that the trillions of dollars on the sideline will help to drive the S&P 500 toward 1,250 -1,300 before year’s end. While that may be possible, the cash appears to be getting sopped up.

But, even with this, investors are in a risk taking mood and the general trend remains generally bullish. It will take a good deal to shake out the bulls…Nothing lasts forever though.”

Corey Rosenbloom, CMT

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