Thursday, Jun 09: Commentary

 The computer algorithm has shifted from uncertain to growth. This is our official recommendation.

Subjectively, we are cautious. The Federal Reserve has signaled their intention to remove the monetary stimulus called Quantitative Easing (QE-2) at the end of this month. Based on Austrian Economics’ Business Cycle Theory, this is bearish for stocks and all other asset classes. Additionally, the past few days of stock market index (price) and volume data has begun to form a pattern that predicts decline. This pattern is not fully formed, so it is not yet our recommendation. We think it is prudent you should know this subjective information in addition to our official, computer generated recommendation. Please continue to follow our signals every day as changes continue to be likely.

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