his week our Current Market Outlook has changed to “Uptrend Under Pressure“. This change in outlook is due to the continued erosion of several technical indicators, along with an increasing number of Distribution Days (days of professional selling) over the past week. As noted in this column several days ago, our proprietary internal indicators were already beginning to signal a change in the markets tone. That developing weakness was highlighted by this past Tuesdays nearly 400 point decline in the Dow. To be clear, this does not mean that a stock market correction is right around the corner. However, the markets internal conditions are showing signs of possibly heading in that direction. We have responded proactively for our clients by maintaining or raising cash levels in all of our strategies and holding tightly to the initial inverse ETF short (hedge) positions in 3 of our equity strategies. (Note: a fourth equity strategy of ours is currently 100% in cash) Based on our work the stock market is still only in a first-stage sell signal. That means caution is advised. In the days ahead the stock markets own action will dictate any changes in our portfolios, and in our Outlook: either back to a “green” light, or if conditions worsen further, to a “red” light. Stay tuned for future updates.
Have a Triumphant day! ®