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.
You can email me with any questions at plus@stockbarometer.com.
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Have a great week!