For Wednesday August 28, 2013, We Recommend Against Investing


Investment Recommendations:

No Change: Ignore our automated market forecast and avoid US stock markets right now.  Continue to avoid all bond investments. Price inflation hedges remain good long-term investments, but only invest in price inflation hedges amounts that you can leave invested for a very long time.

Technical Comments:

The S&P 500 declined 1.6% on Tuesday with volume above Monday and above the 30 day moving average.  Tuesday has been classified a strong-volume down-day by our pattern recognition software.  The two strong-volume up-days that occurred last week had formed the very beginning of a potential growth pattern, but that pattern has been destroyed by Tuesday’s strong volume decline.  Our market forecast remains at “growth” because our stop loss trigger reset lower yesterday.  However, if the S&P 500 were to decline about 5 points on Wednesday (-0.3%) our forecast would likely change to an uncertain trend.

Subjective Comments:

Hopefully all of our readers have been ignoring our automated market forecast and following our subjective advice.  While the threat of war by the US against Syria likely contributed to the market decline on Tuesday, it remains the weak money supply growth since the start of the year that is setting up the market for a crash.  Our daily update is very repetitive and will continue to be so.  Our advice and opinion has not changed.  Avoid US stocks and all bonds.  Price inflation hedges and cash are the places to be invested right now.  Price inflation will get worse, so hedge against it.  Have some cash available for the coming market crash.  There will be an opportunity to invest in securities that go up when the market crashes.

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