Despite the market volatility, staying in the market has proven to be a sound approach. Since my last post in which I recommended being in the market, I haven't sold anything. Looking forward, I just want to reiterate that there could be a correction in the fall. Specifically, the macro indicator is showing a possible peak in August followed by a trough in late October. I would use any corrections during this period as a buying opportunity.
Looking further forward, I'm keeping my eye out for possible deterioration in the early summer of 2017. My (leading) macro indicator heads down beginning in June and it's too early to tell whether the summer will represent a significant peak. In other words, my macro indicator hasn't gone negative yet. For those that have been following my blog, I consider a macro reading of -20 to be significant and a signal of a possible bear market.
So for now, I don't plan to do anything but to look for opportunities to add to positions in late Fall if the market corrects.
Follow signals from the Prophet4Traders system to identify turning points in the U.S. stock market
The purpose of this site is to share results of a trading system that I use for identifying both long-term and short-term trading opportunities. I take the time to do this because of my passion for investing and helping others succeed. The system helped me avoid the "Crash of 2007/2008" and every major correction since then. The cornerstone of my trading system are analyses of market liquidity to gauge longer-term market sentiment and equity and index options (put/call ratios) to identify short-term entry and exits.
This site is for information purposes only. Past performance of the trading system is not a guarantee of its future success. Please consider consulting a qualified investment adviser before making investment decisions.