For Thursday January 02, 2014, We Recommend Investing in US Markets

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Investment Recommendations:

We recently changed our investment recommendation.  It is time to invest in US stock markets.  Price inflation hedges should be held for the long term and remain a good idea as we expect price inflation to accelerate in 2014.  Avoid all bonds.

Technical Comments:

The S&P 500 advanced 0.4% on Tuesday with volume lighter than Monday and below the 30 day moving average.  Last Friday and Monday were technically strong-volume days when compared to the prior day, and each saw a very slight decline in the S&P 500 index.  Our pattern detection software did not classify those days as strong-volume down-days because volume was so low compared to the average volume.  Tuesday was a light-volume up-day, and volumes remained light because of the holidays.  US markets are closed Wednesday for the New Year’s holiday.  If the S&P 500 were to decline about 44 points on Thursday (-2.4%) our stop loss algorithm could trigger a change in our market forecast to an uncertain trend.

Subjective Comments:

Thank you to all of our readers.  We are humbled and thrilled you choose to follow our posts as part of your investment process.  We will continue our daily technical analysis and weekly money supply analysis in the coming year.  We always welcome your feedback and hope you will continue to read our comments.  Here’s to a profitable year in 2014!

Happy New Year!

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