Hello everyone
After the past week’s disappointing market action, I have decided that chewable Pepto Bismol is much better than the liquid version. With that said, the indexes are showing weakness and we need to keep our trigger fingers close to the G-Fund trigger guard. I am not moving yet, but I am closely monitoring the moving averages and trend lines. One intermediate Moving Average that I use is the 75-day, any activity below this is almost a sure red flag and G-Fund signal. See charts below, one without comments, one with comments. The 75-day moving average is the red line. This is used in conjunction with other data, however it’s usefulness becomes apparent by looking at the charts.
As you can see, we had some prior weakness occur in late June, however the market recovered and things rebounded. As we enter August, we are yet again seeing some lack of headway. It should be noted, that historically, August, September, and October, are the market’s worst performing months. So, what does this mean ? This means we are faced with the questions: Should we disregard this poor August performance, and consider it “ops normal”, and continue forward in stock funds ? Or should we consider this the end of the world and go to G-Fund ? Due to my inability to predict the future, I am forced to utilize my charts, historical market notes and experience, and mathematical models to make decisions. Cable business news shows will spend all of their broadcast day trying to answer the same questions.
In summary, one thing is for certain, the markets are displaying weakness, and a move to G-Fund may be in the near future. Let’s see how this week plays out.
Thanks for reading and please share this site with your friends and coworkers.
– Bill Pritchard
