For Wednesday March 26, 2014, We Recommend Investing in US Markets

Investment Recommendations:

Begin accumulating investments that grow with 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 advanced 0.44% on Tuesday with volume below Monday and lighter than the 30-day moving average, resulting in a light-volume up-day. The most recent market trends have been strong-volume down-days interspersed with light-volume up-days. This type of pattern is usually indicative of a market in decline, or about to decline. Presently there are patterns developing, but nothing fully developed to the point of having any predictive value. Should the S&P 500 decline about 10 points on Wednesday (-0.5%) our stop-loss algorithm could trigger and change our automated market forecast to an uncertain trend.

Subjective Comments:

We will be watching the US money supply growth rate very closely this Thursday and next Thursday. With the yield curve becoming flatter and the Fed tapering back the printing press, we are concerned the growth rate of the money supply will slow. If this happens, we will change our subjective investment recommendation to a risk off position. We remain cautious in our subjective recommendation. Accumulate long positions slowly and don’t go all-in. Let’s see what develops with the US money supply.

Wind Down of Daily Blog Posts:

We will continue to post about US markets through the end of March. We are planning on suspending daily posts in early April. We will continue to update our market signals at for our readers interested in tracking our automated and subjective market recommendations. For interested readers, we have the following recommendations for finding excellent commentary:

Best Economic Blog:

The editor of is Robert Wenzel, and he offers a daily email subscription that is absolutely fantastic! You can subscribe at this link. We highly recommend this subscription. You will continue to get great commentary and analysis on the US money supply growth rate using Austrian Business Cycle Theory.

We also suggest, although the blog posts there tend to be a bit snarky and often use terminology that can be difficult for the average reader to follow. is intended for professional traders. There is a larger staff at, so you will find it updated more frequently than, but that’s not always a good thing.

These recommendations will serve you well as we continue to wind down our daily commentary.

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