Week of 9/23/19 - Signal Update
Short Term - Muddy Waters - In our most recent video, I discussed that although we have hit the higher end of the markets, my call was for a reversal. Although Friday was down(With Big Volume), we have just muddled along. With earnings season getting closer and the Fed behind the curve, it's a time for patience. Volatility(VIX) back above 15, it's not a good time to add to equities.
Mid-Term - Back below the wedge and momentum has stalled, this reaffirms our negative view on the mid term.
Long-Term - Relative Strength sloping down(Top of Chart), with S&P going up. This is called Negative divergence. Momentum just can't turn above the red line, so we are still negative.
With a Fed behind the curve(Again), having to pump 75 Billion a day into the system for liquidity(Until 10/10) and and expected negative earnings seasons....Stay nimble and pick your sectors wisely. For us Bonds, Bond Proxies and Gold have been a good place to be.
As always, it's a good time to #staynimble.