Today's Market
by Dr Invest

On solid rock I stand! DON'T SELL TIP OR BND YET! Let me be direct, recent speculation that stimulus would keep stocks high has hit TIP and BND hard. We are up .42% on the Bond Portfolio investment made from MAY until JULY. The foolishness of stocks rising when the fundamentals of the market are declining has hurt my position in TIP and BND. At this time, I am moving my stop-sell to 3% below my purchase price for TIP and BND in preparation that the price of TIP and BND will move lower before moving back to a gaining position. You will remember that when we purchased these ETFs, we set a stop-sell at 3% below the purchased price.

I  am expecting that by the first part of September, we will be seeing declining stock prices and the increase once again in the price of TIP and BND. For the past two days, stocks have been moving sideways if not slightly downward. There has been some good news, but the market's response to the good news has been overwhelmed by the reality that world economies are weakening.

This is really a decision time. If you want to capture some gains, then sell TIP and BND right now. I think the real gains will come toward the end of the month. Again, as I have explained, it is hard to out guess the Federal Reserve. The F.R. just simply becomes an annoyance to where the market is ultimately heading.

Today, TIP fell into the range of OVERSOLD. This means that investors will see opportunities for gains and will begin buying TIP again. Rather than selling, I would see temporarily adjusting the Stop-Sell for TIP and BND satisfactory until we move past this moment of guessing what the F.R. might do.

As mentioned in previous blogs, I suspect that the Federal Reserve will not stimulate until the prices of stocks have dropped dramatically, meaning 12 to 15%.

During this season, I will remain patient, knowing that 1/3 of my portfolio is positioned correctly. I will temporaily readjust my Stop-Sell and wait for the stock market to proceed toward a downtrend.

(Note: the above information is for entertainment purposes only and is not to be used as investment advice.)