For Tuesday March 11, 2014, We Recommend Against Equity Investing


Investment Recommendations:

Sell US equity positions and hold cash, but be prepared to move investment funds back into US markets.  Price inflation hedges should be held or accumulated for the long term as price inflation is starting to accelerate.  Avoid all bonds, including the new MyRA bond scheme from the Feds.  Ignore the propaganda.

Technical Comments:

The S&P 500 was down a small 0.05% on Monday with volume below last Friday and lighter than the 30-day moving average, resulting in a light-volume down-day.  There are no predictive patterns in the daily market data, but the high frequency of strong-volume up-days is mixed with light-volume down days, and this is generally bullish for stocks.  If the S&P 500 declines about 7 points on Tuesday (-0.5%) our automated forecast could change to an uncertain trend.

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