- Our market market analysis of the SPY, trended daily for the preceding 9 - 12 months, shows the market degrading recently. Whether this is a short term pullback or the beginning of a more significant correction remains to be seen. Our rules call for us remain on the sidelines as far as initiating NEW trend trades are concerned. We'll continue to manage stops of current portfolio selections and have begun taking profits whenever one of our holdings falls 2 percent below the long term Chaikin trend line.
- Our sector trend report shows you the relative strength of the major US sector ETF's. Remember, this is Power Gauge strength not strenght based on past performance, so it's a forecast of where money is LIKELY to rotate based on the aggregate strength of the underlying holdings (The Power Gauge itself is largely a fundamental indicator)
- Finally, we have rated the relative strenght of world wide macro stock, commodity and currency ETF's vs. the SPY. The market is a much bigger place than simply the 3000 US stocks that Chaikin Analytics tracks, but right now our analysis would suggest that the US is the safest of havens. Of course, it too is showing some chinks its armour.
If the market bounces, our portfolio will benefit from increases in our remaining holdings. We're ok with missing out on some intermediate term entry opportunities until market conditions return to the what's acceptable for us to trade long equities. Until then, we'll look at shorter term option trades, which benefit from market movements in either direction.