Folks. Sorry about the few months of summer silence. I did not post an alert note in August. Nonetheless, if you had followed diligently on some of the indicators I set up on the right navigation, you could have come to the right (hindsight now) conclusion: the US equity market is still in a confirmed, monthly down trend since S&P dropped below (and stayed below) approx 1288 early August.
The last few weeks, European negative news apparently managed to overcome positive news in the US. Today it still does. It seems that institution investors are biased on more risks aversion. So, I am carefully watching my equity (all paper assets, US domestic and emerging) holding, including silver and gold in the next few weeks. The S&P has broken the widely reported and watched 1100 today and it is not a good omen for the early October. This price level may become a new ceiling to break through and hold if the market is bounce back from today’s action.
Depending on your investment horizon (short, intermediate, long term), you may not have to do anything. For me, since I am not sure where the market will go from here in October, I think FDIC insured cash deposits may be a reasonable shelter for me for now. And if I do anything I only re-balance on days with smaller swings in price levels. Do think about what you can risk and act on what you believe — and not what I say or do.
GC – Editor
