For Thursday March 20, 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 declined 0.61% on Wednesday with volume above Tuesday and below the 30-day moving average, resulting in a strong-volume down-day.  There are still no predictive patterns present in the daily S&P 500 data.  An additional decline of about 2 points (-0.1%) on Thursday could trigger our stop-loss algorithm and change our automated market forecast to an uncertain trend.

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