One of our key indicators turned bearish for stocks in August.
When the 50-day BLUE moving average, is ABOVE the 100-day RED moving average, stocks are in an uptrend and stock market risk is below average.
When the 50-day BLUE moving average, is BELOW the 100-day RED moving average, stocks are in an downtrend and stock market risk is above average.
In the 2nd week of August, the 50-day BLUE moving average, crossed BELOW the 100-day RED moving average, increasing the odds that a new bear market may be at hand.
As a result, we have significantly reduced our stock market exposure in our managed accounts.
Until the S&P 500's 50-day BLUE moving average crosses ABOVE the 100-day RED moving average again, we will maintain a defensive posture, largely in cash.
Risk is too high and the odds of a severe market decline are too great to do otherwise.
Until the S&P 500's 50-day BLUE moving average crosses ABOVE the 100-day RED moving average again, we will maintain a defensive posture, largely in cash.
Risk is too high and the odds of a severe market decline are too great to do otherwise.
John Harris
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