Do not buy into the press's nonsense that the S&P 500 is staging a comeback. It may bounce like a dead cat, but it doesn't have legs. I'm not confident that the market has a rally left in it without a correction, and that'll need to be 10% to 20% draw down to rekindle the enthusiasm in the market makers to drive it higher. If the market is truly rallying back into full steam ahead, we'll need to see the S&P 500 rise and hold above 2950, and that's just to close the last major gap down.
Right now, if you're not certain of anything, cash is a good option. I'm holding my assets is mostly bond funds and precious metal funds and miner stocks. As always, conduct your own research and analysis before executing a trading strategy.
Right now, if you're not certain of anything, cash is a good option. I'm holding my assets is mostly bond funds and precious metal funds and miner stocks. As always, conduct your own research and analysis before executing a trading strategy.
Comment:
I don't have a way to short sell the SPX in any way (my broker doesn't allow inverse ETFs), but I'm using this as a signal to stay out of stocks from the S&P 500 without a very sound theory of why I would consider buying. This week's whipsaw up and down only confirmed that decision for me.
Trade closed manually:
The market is no longer dropping. I'd consider this a bullish reversal with some headwinds on the new rally. It may be short lived, so keep your targets and stops tight.
