Tuesday, Jun 14: Commentary

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

Subjectively, we remain cautious. The Federal Reserve’s intention to remove monetary stimulus (QE-2) at the end of this month is bearish for stocks and all asset classes based on Austrian Economics’ Business Cycle Theory.  Today’s uptick in the market was on low volume, 15% below yesterday’s volume and 9% below the 30-day average volume.  Upward price movement on low volume is not indicative of a healthy reversal of the recent downward trend.  Finally, the past two weeks have been developing a pattern that typically precedes a down-trend.  The pattern is not yet fully formed.

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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