Investors Intelligence reports a bull/bear ratio of 4-to-1. That’s the highest it’s been all year and is approaching levels not seen since early 1987. You may not remember 1987 when the DJIA had a one day loss of 23%. It is the largest one day loss in the history of the DJIA. It took two years for the DJIA to return to the high it hit in 1987 before the loss. Typically, where there’s too many bulls in the market, the market tends to be due for a setback.
One of the readers of my emails sent the following link on momentum investing.
http://www.marketwatch.com/story/how-to-buy-momentum-stocks-without-getting-burned-2014-07-07
A quote from the article: “A momentum investor must be nimble, selling stocks that are losing steam and buying whatever is trending.”
Thanks Don, for the link.
IBD TBP’s Current Outlook is “uptrend under pressure” – NOT a time to invest.
My current investments:
Nordic has a price of 47.36 a sell price 46.94, a relative rank of 81, and will be sold if it drops 0.90% more or I need the money to buy something else.
SAirTransportation has a price of 65.90, a sell price 64.21, a relative rank of 07, and is a hold.
SElectronics has a price of 78.50 a sell price 75.24, a relative rank of 01, and is a hold.
STransportation has a price of 84.14, a sell price of 79.93, a relative rank of 03, and is a hold.
SNaturalGas has a price of 45.10, a sell price 43.84, a relative rank of 04, and is a hold.
My portfolio changes this weekend:
IRA #1 – no change
IRA #2 – no change
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 100% invested