Cash - Are We There Yet?
2/15/2009 11:57:35 AM
Read on to see if our position has changed.
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Just as I wrote last week, the market moves up (and brings our hopes there, too), only to move back down. That is just what happened. I was thinking that after the good week we had prior to last week, we might have continued higher. Well, I thought wrong. As such, has our weighting changed?
The indicator that was bullish last week has turned bearish - so, the question is, are we going into cash? Not just yet since another indicator has stepped up to take the bullish reigns, keeping us 1/3 bullish.
No new position (see weighting below).
Current Weighting Suggestion:
1/3 in Bullish Leverage
2/3 in CASH mode
Long Term Investor Buy Signal Alert
Over the past several years, this indicator has predicted several 100-point or more moves in the S&P. There are only 2 to 3 of these signals every year, so they're worth paying attention to. This is an ideal signal for investors to put cash to work following a down move in the market.
A Long Term Investor Buy Signal Alert was issued October 29, 2008. The last long term investment signal was issued on July 23 where the S&P advanced 62 points.
Long Term Investor Crash Warning Indicator
This indicator is a variation of the widely published Hindenburg Omen. We'll let you know when we're seeing indications of a potential crash to come. This would be a good time for long term investors to take some money off the table.
This indicator is not coming into play at this point in time.
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Have a great week!