Weekend Report
by Dr Invest
I want to give my readers a quick update before the opening on Monday morning. The markets have been pretty beaten down over the past two weeks. A little rise in the market is expected, unless further bad news develops in Europe. I am not suggesting any changes in your investment strategy, because stocks are likely to continue a track that is trending downward. Look again at our seasonal chart below:
What happens in MAY in our seasonal chart for the DOW JONES? Right, from the middle of May until the the last few days in May, the course has been downward. This is not always the rule, but over the past 34 years this course has been typcialy true. With all the bad news coming out of Europe the trend could continue in a forceful downward direction, but probably not! I think the market could flatten out a little higher than the present low, but within several weeks begin to fall-off in price as the market falls to the lows of last year.
Don't be caught by surprise if you see the market climb a little higher. Most likely, the market will be choppy with volatile moves up and down but staying within a narrow trading range during June and July. Your best to be out of stocks and invested in TIP and BND for now. Remember to follow the IVY PORTFOLIO RULES. If the price of these ETFs fall below the 10 month SMA, sell them, but only if it is the first day of the month. Set a stop-sell at 5% below the closing price just to protect your position.
In the market, any investment can lose value. Protect yourself from losses. Read all this blog to learn the best ways to protect yourself.
(Note:The above article is for entertainment puroses and not to be used as financial advice.)
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