For Thursday, Jun 30, the market forecast is uncertain

We recommend selling your equity positions.




Technical Comment:

The forecast has changed from “Decline” to “Uncertain”.  When conditions for a decline are triggered, a stop-loss algorithm is used to prevent large losses if the market goes up against the forecast.  The stop-loss algorithm has been triggered and this is why our forecast has shifted to “Uncertain”.  “Decline” forecasts tend to cluster, so it is likely another “Decline” pattern could develop in the near future.  In the last cluster of 3 decline signals, only 2 were profitable.


Subjective Comment:

Economic conditions in the US, Europe, China and other parts of the world continue to suggest a downward correction is coming in many asset classes, including the US stock markets.  For reasons discussed in posts over the past few days, the US stock markets are still highly likely to decline with day-to-day volatility quite possible.  Investing caution is warranted and holding a cash position remains a very wise idea.

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