I have received numerous emails recently, asking questions along this line….We have done very well of late, what could change the recent upward price action/trend? (Good, Bad & the Ugly soundtrack)
A good friend often reminds me a “blizzard starts with a single snowflake that fits on the end of your finger!” Right now positive snowflakes are all over the place…trends are moving higher and breakouts are taking place in key stock index’s!
The key to whether the quality upside move of late will continue, will most likely be determined by what the U.S. Dollar does at line (1).
Will the rising support line hold or not? This support line DOES NOT justify selling International positions (EEM, EWZ, TUR, GXG, THD) or Commodity positions (SLV, GDX, GDXJ, SLV,OIH), yet it should raise awareness that stops should be in place to protect quality gains in every holding you have!!!