Friday, November 7, 2014

Major Trend Remains Down Despite New Highs

I rely heavily on my market timing signals and despite the massive snapback rally to new highs that we’ve seen I remain extremely cautious of this move. You may be saying that that is good from a contrarion view as a market climbs a wall of worry, however I believe for the most part I’m in the minority regarding a bearish stance. It’s remarkable how the sentiments have gone from bullish to uber bearish to blue sky bullish again. This volatility is not necessarily a good thing from a markets standpoint and should be a reminder that sentiment can change on a dime.
Be careful out there as something is off with the markets in my opinion and it’s backed up by strange readings with my market timing signals. You’d think with the sort of move that we’ve had that my major trend and market timing signals would be green by now and that is just not the case. Something feels off and when that happens I either am out of the market or hedged until the smoke clears.
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