After the market action on Thursday, Investors Business Daily changed their market outlook from “confirmed uptrend” to “uptrend under pressure.” Basically that says the trend may be changing. The prevailing opinion seems to be that as long as the market continues to respond to the federal reserve board as they print more and more money, the market will continue up.
A review of a chart of the last 12 months of the S&P500 (^gspc) on finance.yahoo.com shows a series of higher highs and higher lows as the trend continues upward. The same is true of SBiotechnology (fbiox) except the high made in early October was not exceeded by the high made in later October and the corresponding low was lower than the previous low. This may be a sign of a trend change. SBiotechnology has a corresponding potential trend change sign in June from which it recovered.
The sum of the deviations (1123,974,913) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up – not a time to invest.
My current investments:
SAutomotive has a price of $54.76, a sell price $53.10, a relative rank of 13, and is a hold.
SBiotechnology has a price of $164.12, a sell price $169.78, and is a sell.
JapanSmallerCompanies has a price of $13.65, a sell price of $13.56, a relative rank of 44, and is a hold until I need the money to invest in a better fund or if falls a little more
Nordic has a price of 44.12, a sell price 41.91, a relative rank of 02, and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Sell SBiotechnology
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 60% invested