OnTheMark Market Update – Keep Alert for S&P 1880

Last week I wrote:

“The holidays have left us with a feast of mixed signals.  But for an intermediate term investor there is considerable doubt about this market.  Small companies are not confirming, the recent advances have been on low volume, and long term indicators are decidedly negative.  A 75-25 asset mix of bonds/cash to the S&P still seems the appropriate mix of risk and reward.  As volume picks up in January we’ll get a better indication of market direction.” read more

OTM Market Update – Holidays over but no direction yet

As you can see from the 7 year picture of the S&P 500 chart below, we are seeing a mix of signals.  MIcro and small caps are decidedly bearish, and the large caps are up over 1% since the last posting two week ago and while they appear to be good in the short and intermediate term periods, you can see in the last chart there is weakness in on the 5-min chart. read more

OTM Market Update – Following the Model Part 2

The technical model is now 2.3% ahead of the market over the past 12 months, and ahead of the market at the 2 and 3 year periods as well.  Recommended Equity allocation is around 8%.

The inverse S&P 500 ETF (DOG) is approaching a BUY point, as it is BUY in short and intermediate periods but not in the long period, at least yet.  If you care to try to profit on market weakness you can use an inverse ETF.  I will wait until I get a long term signal before buying. read more