September 27, 2011: Time to Hunker Down?
Posted by mfalvey on September 27, 2011 · Leave a Comment
September 27, 2011
Based on the technical breakdowns and price patterns of the S&P 500 and many risk-based investments, we believe that the probability of a bear market (bad) has increased significantly. This obviously increases the odds that investors could incur losses over an extended time period.
Below are a handful of indicators that we use within our model. We also have several other indicators that we follow for other asset classes and equity indicies (i.e. Russell 2000 and NASDAQ, etc…). In the nature of simplicity and brevity, we will cover a few of the more important S&P 500 Indicators.
INDICATOR #1:
INDICATOR #2:
INDICATOR #3:
INDICATOR #4:
TROUBLING PATTERN:
At Rich Investments, Inc., we’ve made the decision to position portfolios to give the bears the benefit of the doubt. Certainly things can change…and change very quickly, especially with all of the sovereign government and central bank potential interventions. So we will always keep an open mind and remain flexible, but we also must remain objective and evaluate probabilities based on patterns. We do not like the patterns for equities at this time…simply our opinion. What’s yours?
As I post this, the DOW Jones Industrial Average opened up +200 points. The main stream business media is loving it….sensationalizing it to the max. We prefer to tune out the news and follow trends/price behavior/technical analysis. Do you prefer main stream financial media pundits, brokerage firms with huge sales forces, or objective technical analysis as presented above? Below is a screen snap shot from CNBC.com:
Sincerely yours,
Matt Falvey, Chief Investment Officer, Rich Investment, Inc.
