We’ve all heard….Good pitching stops good hitting. Defense wins championships.
When it comes to being defensive in the investment world, investors have several strategies they can apply. The simplest is to “Harvest” assets near highs (reduce long exposure). Our firm suggested that “Slow Money Investors” should harvest some holdings a few weeks ago due to these technical situations at these price levels. (see levels here)
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For those investors comfortable with “scoring on defense” this 5-pack reflects key U.S. index’s that are inverted, looking for the opportunity to buy low and sell higher.
How does one score on defense, what should you look for?
Each chart has resistance lines tied to the 2009 inverted highs with the 200MA applied. If you desire to score on defense, you want to look for breaks above resistance and the 200MA. At this time the Russell and the S&P 500 have the best looking set up, with the NDX 100 not far behind. Let the Power of the Pattern be your friend.
On a different front, many investors have thought bonds players were way out of touch, as yields have fallen too far compared to the price of stocks. Could stocks be the one that is actually out of touch?
Could stocks play a game of “Catch Up” with bond yields? Very possible!
