OTM Market Update – Still a Dangerous Market

Despite the 1.4% increase in the S&P500 index last week there is no reason to believe that this market is changing its tone.  The attached technical charts still are negative for the S&P, including now a SELL signal on the S&P weekly.

As an intermediate term investor (and not day trader) you should use your asset allocation to protect yourself.  As noted in previous posts I am 80% cash and short term fixed income.  The number of true opportunities where your upside/downside risk ratio is better than 2.0 is very limited right now.  There are times when being in the market is too risky for the potential reward.  This is one of those times.

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