Wednesday, June 5, 2013

SPY – Has the Tune Changed? 6/5/13

I noticed a down signal tonight on SPY after market close. SPY is a proxy for the market. This means I will pull back and close out position in my 401K and R/IRA and wait till the market turns back around. A down signal does not predict how steep or how shallow a drop will occur. I am cautious and conservative, and I do not like to stand around waiting for a bounce to sell.

I have also noticed the sharp drops the real estate markets have recently taken – look at IYR or SPG. Same applies for JNK which represents Hi yield corporate bond funds. Bond funds have reeled and so has EEM Emerging markets. No shelter in GLD which I have written about earlier.


Let us watch and see how this shapes up. Meanwhile I will sit on the sidelines.



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