Mixed signals makes for a mixed
allocation.
I am now 50% G fund and 25% each in the C and S funds. Yesterday morning's weakness spooked me a little and I had to make a decision whether to try to play the short term a little more defensively. The day actually ended rather positively although on very low volume. These little pullbacks have been bought pretty quickly the past several weeks. Today will tell us if yesterday's second day of consecutive lower highs and lower lows will continue to a third, or if buyers will step up again and start another move up.
Once again I want to show you the current S&P 500 chart versus the 1994 chart. Take a look within the blue boxes...
Chart provided courtesy of www.decisionpoint.com
It is still a very similar comparison, and if this pattern is to continue we are close to the top of this leg up. You can see below that the trend continued up for the market for a couple of months, but not before another severe drop. I don't know when or even if it will happen as in 1994. I just know if the S&P is to follow this pattern, the drop will be quick, severe, and it won't give us much time to think about it....
Chart provided courtesy of www.decisionpoint.com
Add this to the "smart money" getting very bearish in the short term (see below) and the herd getting very bullish, and a repeat of 1994 is not out of the question. It would certainly get our psychology indicators back into positive territory, one of the market legs that has been getting wobbly. That will set up another good buying opportunity.
That's all for today. Currently 50% G, 25% C, 25% S fund. Until next time...
I am now 50% G fund and 25% each in the C and S funds. Yesterday morning's weakness spooked me a little and I had to make a decision whether to try to play the short term a little more defensively. The day actually ended rather positively although on very low volume. These little pullbacks have been bought pretty quickly the past several weeks. Today will tell us if yesterday's second day of consecutive lower highs and lower lows will continue to a third, or if buyers will step up again and start another move up.
Once again I want to show you the current S&P 500 chart versus the 1994 chart. Take a look within the blue boxes...
Chart provided courtesy of www.decisionpoint.com
It is still a very similar comparison, and if this pattern is to continue we are close to the top of this leg up. You can see below that the trend continued up for the market for a couple of months, but not before another severe drop. I don't know when or even if it will happen as in 1994. I just know if the S&P is to follow this pattern, the drop will be quick, severe, and it won't give us much time to think about it....
Chart provided courtesy of www.decisionpoint.com
Add this to the "smart money" getting very bearish in the short term (see below) and the herd getting very bullish, and a repeat of 1994 is not out of the question. It would certainly get our psychology indicators back into positive territory, one of the market legs that has been getting wobbly. That will set up another good buying opportunity.
That's all for today. Currently 50% G, 25% C, 25% S fund. Until next time...
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