France experienced an attack by ISIS. I am sorry to hear
about those that were killed and their families for the loss of loved ones and the
many injured people. Their lives changed. Terrorism adds another layer of
uncertainty to the markets. After approaching the highs, the market is
withdrawing and I am seeing sell signals. I am out of the market with the
exception of a position in a bond fund using the Ivy Portfolio strategy. Also I
am still in the vertical calls I had sold on the Nasdaq100 QQQ. That expires in
December so I will hold it for a little longer to get more time decay before exiting. Both these
positions do better when the market goes down.
SPY has an exit long signal so those that want to preserve
capital will want to exit now. Stochastic is bottoming out so it is likely to
see a bounce after the recent drops. Although with a terrorist attack, people
may not be in a mood to go long. I suppose the computer programs running on
algorithms really don’t care.
See chart below on S&P500 (SPY) now has an exit long signal.
I usually use it to exit my 401K positions; but since I did not go long in the
first place, no changes are needed for me.
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