US: Long-Term Trend Model on 'BUY'

Our long term trend model for ETF investments moved to a buy signal two weeks ago and remains solidly bullish. ETF investors should be invested by 50-100%, pullbacks of the major US market indices can be used as low risk entry points. If you are still in 100% cash, I would look to add 25-50% on pullbacks in the SPY.

With that said, the current environment for breakout / swing-trader is still a bit tricky, there is still nervousness in the market and volatility increases for any sort of market relevant news.

Individual stocks are not yet moving in earnest and we remain in a "hard penny" environment. Stay patient and disciplined for now. We will enjoy an "easy dollar" market again at one point, the only question is when. For now, I would hold off on getting too aggressive until we get more confirmation that a reliable bottom has been established. Stock traders should only buy qualified breakouts and only get aggressive if and when breakouts start displaying meaningful follow through. Always apply the concept of progressive exposure.

Notwithstanding a continued rally, backing and filling could take months. This will depend very much on inflation and the affect rate hikes are having on the economy.

Our JS-TechTrading risk model stays on green: