Stadion Market Commentary- March 29, 2012

Stadion Money Management issued the following statement regarding this


“Entering this new window and the start of the 2nd quarter of 2012, we are
amidst a strong rally we have seen develop in global equities in the 1st quarter
of 2012. This rally has stemmed from three developments: A significant infusion
of liquidity by the European Central Bank resulting in a stabilization of
sovereign debt-related issues in Europe; the gradual healing of the U.S. labor
market; and an intermediate term shift in FED policy from being reactive to
being proactive. Given these developments, recent gains appear justified;
particularly as equity valuations were relatively low when the rally began. As
stocks still appear reasonably priced, especially relative to bonds, there still
may be room for the rally to extend. However, there are some hurdles that need
to be cleared for that to happen.


The US market has reached a historically important price level with the
S&P currently trading around the 1,400 level. Since March 13th, the market has traded
within a fairly tight band around this 1,400 psychological barrier. Technical
levels such as this often times act as resistance points for the markets as some
participants take profits off the table, others sell just to break-even, and
buyers hesitate to see if growth expectations are correctly priced in their
view. Fundamentally, future gains and a breakout above the 1,400 level will
likely depend on an improving global economy — and could be accompanied by
greater volatility. The comforting thing about the Stadion strategy is if the
trend continues we are positioned to participate. However, if the 1,400 level
proves to be too high of a hurdle, and the market reverses course, Stadion’s
sell criteria are designed to move us to a more defensive posture until a new
trend develops.”