Listening to market experts from the major investment firms on various news shows is always interesting. They cannot says bear market, they cannot say sell. They say market fluctuations will continue or that you should lighten up on your equity portfolio. The Dow Jones Industrial, S&P 500, and Nasdaq indexes are all below their 200 day and 50 day moving average and the averages are moving down – all indications of a bear market.
IBD TBP’s Market Pulse is “Confirmed Uptrend” as of 10/02/15 – a time to buy – maybe. This is the 11th confirmed uptrend in the last 12 month. The previous 10 uptrends lasted between 1 to 50 days. I used market in correction or uptrend under pressure as an ending signal. Seven of the uptrends ended within a week and if I had waited a week, I would have had fewer losses. Especially harmful was the loss caused by the 7/16/15 confirmed uptrend which caused me to buy on 7/20/15. A week after that confirmed uptrend, it ended and waiting a week would have completely eliminated that loss ~20% loss I sustained in SBiotechnology. IBD states that “A follow-through day confirmes that an uptrend is underway” and “Not all follow-through days work”. Therefore I am going to make my buys based on the market pulse reading a week after a confirmed uptrend is issued. So while IBD now indicates it is a good time to start to buy, I am going to wait a week.
My current investments:
IRA#1
None
IRA#2
None
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes:
IRA #1 – 00% invested
IRA #2 – 00% invested