Saut: We Remain Cautious, But Not Bearish

Jeff Saut, the respectful strategist at Raymond James has posted his weekly missive, see the latest version here. Last time on this blog Jeff suggested this.
His call for this week (but read the full story) in very short:

We have now experienced two consecutive down weeks in the SPX, the first such occurrence since the March “lows.” Worryingly, both weeks contained a 90% Downside Day, which is why we remain cautious, but not bearish. Indeed, according to Bespoke Investment Group, July has historically been a strong month for equities, with an average gain of 1.17%, and a 70% positive monthly track record over the last 20 years. However, late last week the Russell Rebalance (Russell Investment Group rebalanced its 25 U.S. indices) created some “noise” that is unlikely to abate until quarter’s end. And speaking of noise, this morning we find out that even Greenpeace is against the Cap and Trade Bill as things remain curiouser and curiouser . . .

Consider as a probability!