The market action today hasn’t instilled much confidence
that this is a good time to get in. Still, market internals are very positive. Of
the Dow 30 and ETF’s I track, Consumer Discretionary (XLY) or Materials (XLB) seem like a
reasonable choices. AAPL and INTC are too, but I need to wait longer to avoid the
“wash-sale rule.” (The rule defines a wash sale as one that
occurs when an individual sells or trades a security at a loss and, within 30
days before or after this sale, buys a “substantially identical” stock or
security, or acquires a contract or option to do so.)
We now have another bearish rising-wedge on the S&P
500 chart. The apex of this one suggests the pattern would resolve on or before
3200; but it could get to the apex (like the last one), i.e., 3200 is the
current max target for the Index.
I will increase to 40% invested in stocks. Can’t say that I am confident in buying
now.
