SmartStops.net

SmartStops Market Risk Report 
For the week ending Friday, June 28, 2013

Be Paid For The Risk You Take!

Risk does not remain constant, but instead fluctuates over time. Why expose yourself to periods of elevated risk if you don't have to?

Each day you are long and in the market, you are exposed to risk. Make sure you are being paid for the risk you take. Timely protective action to sidestep periods of elevated risk can maximize your return for each day in the market.
This Weeks Market Risk

Market Risk remained on the high side this past week with 71% of the S&P 500 components in the elevated risk state as of Friday, June 28th. This represents 1.73 times the 100 day average.   

   

SmartStops Market Risk 06-28-2013   (View Market Risk Barometer)

 

The S&P 500 Volatility Index (VIX) pulled back slightly from last week dropping from 18.90 to 16.86.    

  VIX 06-28-2013

 

As for sectors, Basic Materials has seen the largest run up in risk with an elevated risk ratio of 90% while Healthcare is currently experiencing the lowest elevated risk ratio of 57%.  This is consistent with a market becoming more defensive.  

 

  Basic Materials Sector Risk 06-28-2013

 

Healthcare Sector Risk 06-28-2013  

 

Recent Events Impacting Market Risk

 

Highlighted Stocks & ETFs 

 

Blackberry   (view BBRY)

Blackberry tanked Friday, loosing 28%, following a disappointing earnings report and forecast. Of particular concern was the slow uptake of the Blackberry 10, its latest flagship smartphone which was supposed to get Blackberry back in the game.

The discussion around Blackberry has turned from business strategy to business survival as demonstrated by this recent article by Julianne Pepitone titled, End may be near for BlackBerry.

SmartStops has had Blackberry in the elevated risk state for much of the past two years and issued over 40 separate risk alerts during this period.  

Blackberry is currently in the Elevated Risk State according to the SmartStops Agressive Risk Signals. 
    
  Blackberry 2 Year Risk Chart


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