Isn’t it nice to be in cash on the sidelines during this decline? The GMI issued its Sell signal on 9/26. All of the pundits are rushing to explain the decline by things happening now. However, the GMI picked up on a decline long before these events. One must follow the market, not the news. The GMI will likely flash a Buy signal long before the news turns positive. Remember how most pundits were skeptical of the market’s rise that began in 2009!
The market will retest Wednesday’s lows and I suspect even if they hold, the market will eventually go lower. This still mini-decline could turn out to be the prologue to a major bear market. It takes a while for the 30 week average to curve down. Time will tell. Meanwhile, take a look at the weekly chart of the SPY. Note how small the current decline appears compared with the decline in 2011.
Are you still keeping your pension funds invested in the market? If so, what would cause you to move them out of equities. Thanks and keep up the great work.
It’s even nicer to be in QID right now