Editor’s weekly market thoughts:
Recently we have been going through some crazy trading days with world market news bouncing between Greece, China, and the NYSE outage. Eventually midterm cycles are due to turn around and the world’s events can make it happen sooner or later. It is just a good excuse for people and analysts to use events for behavior. It is just noise. At the end of the day when the dust settles, we as traders play the hand that we are dealt. Hence, if the odds are in our favor to place a trade we do it and at the same time we enter a Stop-Loss order to protect our position in our Index Trader system.
Despite world economic concerns, or perhaps even a temporary resolution thereof, markets are on schedule to have an intermediate rise either way. However, what remains a question is the ultimate strength of that advance. Long term our trading system’s forecast is in decline, and historically, the longer term influence can have an effect on a short term rise. We will still do long trade positions, but our stops have to be tight to protect the position.
Since volatility is currently high, we need to wait for swings to settle down and some base building develops in S&P 500. It is always better to wait for a confirmation rather than entering too early in anticipation of a move and getting whipsawed.
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US Equity Sector Portfolio Signal Page
US Bond Sector Portfolio:
Index Trader systems, (The short term trader):
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