For Tuesday December 03, 2013, We Recommend Against Investing

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Investment Recommendations:

Avoid US markets and watch closely to see what trend develops.  Cash positions (including currency) and price inflation hedges are still recommended.  There is too much uncertainty in US markets right now to make an investment recommendation, although it is probably safe to hold any currently owned equities through the end of the year.

Technical Comments:

The S&P 500 declined 0.27% on Monday with volume above last Friday but below the 30-day moving average.  Monday was classified a strong-volume down-day by our pattern recognition software, but the below average volume makes Monday’s decline less significant and a fully developed predictive pattern remains absent.  However, as a strong-volume down-day, Monday will contribute to the development of predictive patterns should strong-volume down-days accumulate rapidly.  If the S&P 500 declines about 43 points on Tuesday (-2.4%) our automated market forecast would likely change to an uncertain trend.

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