IRA Investing: Still Searching for a Bottom

Richard Moore, CFA, writes about strategies for asset allocation in IRAs.

The market is still trying to find its footing and the news from General Electric (GE Quote) on Friday reminded investors that earnings news over the next couple of quarters will probably not be fun reading.

While it doesn't seem to me as though we are likely to make substantial new lows, my indicators have weakened a bit, and a trading range might be the most likely scenario for a while.

My indicators didn't really change much last week with one major exception. The problem, as I discussed last week, is in the ratio of Nasdaq volume to volume on the NYSE. This ratio is meant to show the level of speculative activity in the market and therefore the amount of risk being assumed by investors at any given point. Ratios over 1.4 are worrisome, while ratios under 1.2 are attractive. ...