The one asset you will want to buy today is GOLD. It's only up 23 bucks - which is incredibly surprising given that the Fed just announced unlimited bond buying. Folks, this is incredibly bullish for Gold. incredibly. The case is even stronger for silver, but the opportunity to buy cheap may have passed for now. Still, a tranche today will be well worth it in 5 years.
As for other assets, it's still a mixed bag. the problem we faced, and the reason we bought the last dip (instead of buying momentum) is that we need to squeeze every last percentage point of profit out of this rally, because there is still a fine chance that it will come to an abrupt end. We want to have taken profits and be waiting for the next dip before then.
A post at the close will give us an update, but I suspect that our indicator will remain cool, which means we are not selling yet. We are also not buying.
Remember: A warm indicator means we have an opportunity to buy the next dip, and we also are not selling.
An Ice Cold indicator means we need to take profits now and run for the sidelines.
A Red Hot indicator means we are likely to see a huge market rally, and so we can buy on momentum with the least risk of short term downside potential.
If the Transportation average and the Dow beat their intermediate highs, we will be in a Red Hot market. If they both beat their all time highs, we will be in a super-ultra-hot market.
Q: Why are all of your indicators the opposite of what I normally think of? Cold should mean 'sell', shouldn't it?
A: No. I am teaching you contrarian investing through concrete visual images :)
