This earlier this week Investors Business Daily changed their market outlook to uptrend under pressure. The interpretation of that market outlook is proceed with caution and be ready to take defensive action. Basically it is an indication that this is not the best time to invest. The next step may be confirmed up trend – the best time to buy stocks. Or it may be market in correction – avoid making new buys and lock in gains and cut short any losses. Based on historical standards this bull market is long over due for a correction. I mentioned gold last week. Watching the the prices and 50 day moving average for GLD indicates it may have made a bottom. There is no reason it should repeat the pattern it made in the late 70s, but it is something to watch.
One of Fidelity’s stupid rules on selling mutual funds is the round term trade rule – or hold it for 30 days or we will yell at you and may not let you buy again if you do it too much (4 times). My selling of JapanSmallerCompanies earlier this year resulted in Fidelity yelling at me. I hung up on them after strongly suggesting it was a stupid rule. However if next week should be time to sell something, I will have owned everything at least 30 days so will not break their stupid rule.
The sum of the deviations (943,1046,904) is not up for the last two weeks – not 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 buy.
My current investments:
SAirTransportation has a price of $50.90, a sell price of $49.17, a relative rank of 17, and is a hold.
SAutomotive has a price of $52.59, a sell price $50.50, a relative rank of 02, and is a hold.
SBrokerage&InvestmentMgnt has a price of $64.63, a sell price $62.44, a relative rank of 14 and is a hold.
SBiotechnology has a price of $162.32, a sell price 160.31, a relative rank of 01 and is hold.
JapanSmallerCompanies has a price of 12.99, a sell price 12.75, a relative rank of 06 and hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 100% invested