Dividend Digest 274, July 15, 2015
There is pretty good evidence that the correction has ended. Just 4% peak to trough. Our VIX work confirms, so the name of the game now is to monitor the rally for evidence that it is strong enough to carry to new highs and not just a simple return or snap-back rally before a break down.
The interesting thing is that smaller stocks managed a gain last week, while middle-sized stocks fell a bit and larger stocks were flat. Growth continued to maintain its edge over value.
All I see for Chinese stocks for the moment is a typical throw-back rally. A great deal of damage has been done. Do not expect an immediate recovery.
We are expecting another up leg for the dollar against the euro in specific, and most other currencies in general, to occur soon.
John Bollinger, Capital Growth Letter, www.bollingerbands.com, 310-798-8855, July 13, 2015
