With the breakdown under key support on Friday’s close in the main indexes at their 50 day moving averages, combined with heavy institutional selling, our Current Market Outlook has been downgraded to “Market in a Correction” with a “red” light. Two of our Core Four indicators are now red, with one yellow and one green. The correction we wrote about recently is here. How long it will last is open to debate. This could prove to be a harsh shake-out setting up a massive up move into the end of the year. Only time will tell. Watching the action on Monday and Tuesday will give a better clue as to the appetite of the institutions.
What should investors do now? Stay calm. Keep playing defense: lock in profits and sell losers. Continue employing your exit strategy. It will be wise to wait for positive news catalysts and a new confirmed uptrend before committing new capital.
Have a Triumphant day! ®
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice. ©2020 Triumphant Portfolio Management, LLC.
Where Are Woodward and Bernstein When We Need Them? This article was written by Newt