Last week was an uneventful one, as the major stock market averages bounced around with no apparent direction. While there was some modest improvement in a couple of my indicators, they all ended the week in the same general position as they ended last week.

My longer-term indicators remain solidly bullish. Value measures continue to be positive. The breadth of the market is matching the action of the major averages. Market-sentiment measures are bullish, as short-sellers remain very active, always anticipating the bear market they feel is right around the corner. I cannot find any reason to believe that this bull market that began in 2002-2003 is close to coming to an end.

My intermediate-term indicators remain categorized just as they were last week. One of my put/call volume ratios remains neutral, while the other one remains bearish. This bearish indicator, though, did record some improvement last week. My third indicator, which measures the ratio of odd-lot sales to odd-lot purchases, which has been trending higher because odd-lot investors have stepped up their selling a bit, nevertheless remains in neutral territory.

This set of indicators leads me to maintain my target cash position of 15%. If we were to experience a downward-trending market over the next couple of weeks, I would anticipate that my intermediate-term indicators would improve, and I would then reduce my target cash position. Currently, in my IRA, I have a cash position of 13.5%.

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