In the old TV program, Lost in Space, the robot would cry “Danger Will Robinson”, warning young Will of possible trouble; I know I’m showing my age. Well, our indicators gave us such a warning on Tuesday.
The release of the minutes from the recent FOMC meeting indicated that the Fed has taken any further quantitative easing (QE-3) off the table. Market participants understand that QE has played a major role in driving asset price higher. The market’s reaction to this news was less than jubilant to say the least. Stocks, commodities and especially precious metals rapidly declined on heavier volume.
I did take evasive action, pairing back our positions once again. Technically, this rally has gotten long in the tooth.
Daily Market Snapshot
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| The Bears gained the upper hand on Tuesday. |
Market Direction Model
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| Is the much anticipated correction at hand? |
As I mentioned in the latest issue of The Gerritz Letter, we are due for a correction. Is this the beginning? I don't know; but I am willing to error on the side of safety.
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.
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