“Federal Reserve Board Chairman Ben Bernanke
told Republican senators on Capitol Hill on Wednesday that he's concerned about
European sovereign debt problems and he warned that the economic
unraveling of Europe would have a negative impact on the U.S. economy.
"He's very concerned," Hatch told CNN. "He did say that
if they can't get their things in order, it could affect us. A collapse over
there would be detrimental to us." – Full article at CNN/Money http://money.cnn.com/2011/12/14/news/economy/bernanke_europe_senate_gop/index.htm?iid=HP_LN
Europe
was probably the cause for a down day today since Italy’s yield on relatively short term debt again moved up to
unaffordable levels.
Today,
Wednesday, the S&P 500 went down another 1% to 1213.
Technically,
I think we are at or near the bottom channel line which would be confirmed by
an up day tomorrow. We’ve had quite a few down
days this month so we are due for a bounce.
I am still optimistic, but that will change quickly if we go down much
further.
The NTSM system responded by dropping to HOLD
today, moving us closer to a sell signal.
I still think the odds favor the S&P moving up from here. (Yeah, I know...trade what you see, not what you think.)
I
bought back into the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct
NTSM buy signal. I remain 100% long in
the long term portfolio (100% stocks in the 401k.). (See the page “How to Use
the NTSM System” – the link is on the right side of this page).
I
am 90% long in the trading portfolio.
Just a reminder: 100% invested in stocks is way too much for most rational folks. Don’t do it unless you have a high tolerance for risk.
