Market Snapshot
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| Market in Correction |
Market Direction Model
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| The Red Cells show that the market has been declining all week. |
Chart View
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| Big moves up and now down |
The market has retraced much of the Quantitative Easing Announcement inspired rally. The market rapidly shot up when both Draghi and Bernanke announced planned QE programs. The market quickly became overbought and a correction followed and continues.
The longer term uptrend remains intact, but near term stocks are falling. I think the decline will be limited to less than 8 %. I have reduced our risk exposure in a big way. Hopefully I can successfully buy back at lower prices and catch the year end rally that is still expected.
After a consolidation, the Flexible Income Sectors are beginning to strengthen. The Flex Income Folio is now fully invested in positions that are gaining.
The investment community is referring to this year's rally as the most hated rally in history. No one has been able to effectively capture the index returns this year for a number of reasons. It is difficult to invest with any degree of confidence when the real worldwide economy seems to be in decline. The markets are being driven primarily by the hope that quantitative easing efforts will continue to be effective in keeping the markets afloat.
The longer term uptrend remains intact, but near term stocks are falling. I think the decline will be limited to less than 8 %. I have reduced our risk exposure in a big way. Hopefully I can successfully buy back at lower prices and catch the year end rally that is still expected.
After a consolidation, the Flexible Income Sectors are beginning to strengthen. The Flex Income Folio is now fully invested in positions that are gaining.
The investment community is referring to this year's rally as the most hated rally in history. No one has been able to effectively capture the index returns this year for a number of reasons. It is difficult to invest with any degree of confidence when the real worldwide economy seems to be in decline. The markets are being driven primarily by the hope that quantitative easing efforts will continue to be effective in keeping the markets afloat.
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