Trading signal occurs in HSA mdoel portfolio: Sell CBSAX, Buy Cash.
Trading signal occurs in nSSPP mdoel portfolio: Sell ARGFX, Buy REIT Index.
President Obama is frustrated over the Gulf Oil Spill while investors are frustrated over the pace of economy recovery. The anemic job creation by the private sector in the May job report on Friday pulled down the major market indexes by more than three percents in a day. The S&P 500 index closed this week at 1064 down 2.25%, the Dow Jones Industrial Average decreased 2.02%, and the Nasdaq composite index lost 1.68% for the week.
The monthly chart of S&P 500 index shows that the uptrend support has been broken and the momentum is heading downward. The S&P 500 index broke through its long term resistance in July 2009 establishing the current multi-year uptrend. However, the uptrend seems to be disrupted by the recent market sell-off. We do not know whether this signals the start of a down trend or it is just merely a deep correction. Under these conditions, I will be cautious and move to the sideline. According to our trend following principle, we will wait before the index climbs above its trend line again.
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