Intermediate Term Update - Imperfection

The Weekend Update highlighted a downtrending resistance line that should have turned prices down. Instead the Dow blew through the line as though it wasn't even there. Unfortunately, that is what makes trend lines and in fact, pattern recognition analysis an imperfect science. It works more often than it doesn't, but not this time.  

This market is extraordinarily difficult to trend-trade. One idea is to simply stand aside until things get back to normal. As we saw in early February, we can make a lot of money very fast in the right kind of trading environment. We just aren't back there yet. The Short Term portfolio, as you can see below, has made a complete transition to the Long side, with is often a precursor to the Intermediate Term to follow suit.  Now for at least, the intermediate term portfolio remains steadfastly bearish and it will take several hundred more Dow points on the upside to turn it around. 


*Note that AAPL is close to triggering a Buy Signal. If it does I'll send out an interim Alert.