The Wednesday Update of the Navigate the Stock Market System

My guess is the correction (if it ever gets here) will be announced by a large up-day, perhaps in the 1-1/2 to 2% range.  If that happens, I will buy a “short” mutual fund in the trading account.  (A short fund goes up when the market goes down.) I use the Rydex Inverse Nasdaq 100 2x Strategy fund. 

 

I won’t sell my longer term holdings until the NTSM analysis give a SELL signal.

SUMMARY OF INDICATORS:

As of today’s close, our 4-areas of market analysis present the following picture:

SENTIMENT:  Neutral. %-bulls indicator has pulled back and is now 40%.  This is a middle-of-the-road reading.  (Sentiment is a reverse indicator; a high %-bulls indicator is bearish for the market and vice versa.)

PRICE: Neutral. Price action has meandered around and there isn’t a clear direction indicated.

 

VOLUME: Neutral.  More volume has been going to the upside…even with today’s down day in price.  That’s good, but the numbers aren’t strong enough to be a Buy yet.

 

VIX:  Neutral. 

The overall status for the Navigate the Stock Market system is HOLD.   (Our indicators are based on closing data so we generally wait until after the market close to update the system.)

MY INVESTED POSITION: I remain 100% invested in retirement funds and all cash in the trading account.  (This is an absurdly aggressive position (for an old guy) and I don’t recommend it unless you have an extremely high tolerance for risk.