For Monday June 17, 2013, We Recommend Against Investing

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Investment Recommendations:

Avoid US stock markets right now.  Price inflation hedges remain good long-term investments.  Continue to avoid all bond investments.

 Technical Comments:

The S&P 500 declined 0.6% on Friday with volume below Thursday and lighter than the 30 day moving average.  Friday’s light volume was pretty typical for the end of a week.  The light-volume down-day on Friday did not cause our pattern recognition software to identify anything significant.  The decline was not enough to trigger our stop loss algorithm, but should the S&P 500 decline about 7 points (-0.4%) on Monday our forecast would likely change to an uncertain trend.

Subjective Comments:

Continue to ignore our automated forecast.  We don’t think the market is going to grow because of the changes in the US money supply.  Please see our recent posts for a full discussion of the money supply and why we think means US markets are heading for another crash in the near future.  Avoid US stock markets right now.  There could still be some upward movement, so we are not yet advising short positions.

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