For Tuesday, December 4, 2012, We Recommend Against Investing

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Technical Comment:

The S&P 500 declined 0.5% on Monday with volume below Friday and lighter than the 30 day moving average.  If the S&P 500 declines about 18 points on Tuesday (-1.3%) our forecast could change to an uncertain trend based on the stop loss algorithm in our automated forecasting process.

Subjective Comment:

Monday’s decline in US markets was on lighter volume.  This means our pattern detection software still has not identified anything of predictive value.  Our automated forecast remains a function of our stop loss algorithm.  We still think the accelerating growth of the US money supply will ignite another bubble boom in the US economy and stock market.  There is evidence of a starting boom now emerging in the automobile sector.  We think the US market will remain volatile and not make much headway for the rest of December thanks to the political uncertainty regarding changing tax rates in the US.  Continue to avoid all bonds and equities in the Eurozone markets.  Be prepared to invest in US equities in the near future but not yet.

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