Go For It

I'm going to make this quick tonight being the NCAA final is starting soon. The Seven Sentinels have issued a buy signal as I thought they might today. Here's the charts:



Buy X 2



Buy X 2



Buy X 2



Buy X 1

Buy = 2 + 2 + 2 + 1 = 7

So the system has flipped back to buy today and technicals look strong. That doesn't mean there isn't any warning indicators out there, but a buy is a buy. How long it lasts remains to be seen. Good luck to all. Go Butler!

 

[Boghie]

Enjoy the game...

And, I jumped the gun. Hope this signal is at least a mid-term event...

 

[Boghie]

Go Butler Go...

And, I am a Duke fan.
Been one for decades...

 

[KevinD]

CH - Whats your allocation going to be?

 

[coolhand]

CH - Whats your allocation going to be?

Folks have been asking me about that. The straight answer is I'm staying 100% G fund. I do not believe this latest buy signal will last all that long, although I could be wrong. This market is exhuberant and way ahead of itself. This market is not about fundamentals, it's about emotion right now.

I have other reasons too. First, my Roth IRAs are fully exposed to this market so it's not as though I'm not benefitting from the rally. Those are buy and hold accounts though. Interestingly, my IRAs have not yet gotten back to their 2007 highs, while my TSP (which I trade) moved past its 2007 high last year. (I missed the majority of the losses in my TSP account from 2007 to 2009, while the IRAs road the roller coaster.)

Second, I don't like the set-up. Last summer we had fast moves higher followed by faster moves lower that whipsawed me because I couldn't react fast enough. The current rally is starting to feel like that.

Third, most of the gains are long gone since the March lows. I refuse to chase this market unless I'm buying a low off a correction now. That's a much better set-up with a lower risk factor.

Fourth, with two lousy IFTs a month I have to do a better job of stacking the odds in my favor. Especially as this is early in the month yet. A better buying opportunity may present itself later in the month.

 

[hotwings]

Couldn't agree more with your assessment here... I have 20% in G waiting to move it in on a pullback.

 

[Frixxxx]

This will be the last buy signal this month.....when we get closer to May, we will see the traditional sell off and consolidation will occur. I don't think we are on track for a repeat of last year's growth!