For Wednesday January 9, 2013, We Recommend Investing in US Markets

undefined undefined

Technical Comment:

The S&P 500 declined 0.3% on Tuesday with volume above Monday and higher than the 30 day moving average, resulting in a strong-volume down-day.  There have been few such days in the past three weeks, so the frequency of strong-volume down-days has not risen to the level of concern for a growing market.  If the S&P 500 were to decline about 13 points on Wednesday (-0.9%) our automatic forecast could change to an uncertain trend based on the current status of our stop loss algorithm.

Subjective Comment:

Strong-volume down-days will occur from time to time.  When many occur in a short period of time then the market could be headed lower.  There is no reason to react to Tuesday as any sort of turning point because there have been too few such days recently.  It is much more likely US markets will continue to advance as the money supply continues to grow.  We recommend investing in leveraged index funds that grow with the US market.  Avoid all bonds and hold your price inflation hedges for the long term.

Comments are closed.