Inflation or Deflation? Growth or Recession? Europe’s worst challenges behind them or not? Washington going to make tough decisions or keep kicking them down the road? Worst Thanksgiving week since the depression then, a 250+ rally in the Dow on Monday. What does good black Friday sales mean to the overall markets?
Markets/News sending any “Confusing Signs” to investors of late?
CLICK ON CHART TO ENLARGE
If we step back for a moment, catch our breath and look at the bigger picture some key patterns aren’t sending confusing portfolio allocation signs at this moment in time!
The break of key support lines in the CRB & CRX took place months ago …the break of support meant that risk exposure should be reduced. Has this sign been correct for months? Yes!!!
Someday overhead channel resistance will get taken out, until it does the breakdown in two key commodity index’s continue to suggest that investors should underweight exposure to risk assets (stocks and commodities).
Thanks for the clear roadmap. I positioned myself for a rally on Wednesday last week (closed out RWM and EFZ) by buying several ETFs that were poised to jump. I am up ~4% on all of them.
After reading your post, I will go ahead and sell. It looks like the 50 d MA is acting as strong resistance anyway. Just look at IWM. It touched its 50dMA and then retreated. It is in fact negative for the day.
Thanks for your insight,