Next Week In The Market

 

Big, big week coming. This video is condensed from our "Weekend Update." 

Occam's Razor

"When presented with competing hypotheses to solve a problem, one should select the solution with the fewest assumptions."

Occam's razor is the basic principle behind what we do. We call it trend following and the working hypothesis is that all we need to time the market (and individual stocks) is to identify the dominant trend. The charts below are placing the market on the cusp of, or already in the midst of, an important change in intermediate term trend. The breakdowns below only tell a part of the story as many individual stocks have already established intermediate term downtrends as sell signals in the trading table attest. But these 4 are the biggies, with only the S&P and Dow clinging onto teetering uptrends. 

DJIA

 

SPX

 

Russell 2000 

 

NASDAQ 100

New downtrends need to get footholds before retracement rallies and ensuing Sell Signals can be triggered. For now we have enough portfolio stocks in clear downtrends to continue to provide high probability Short signals: FB, TWTR, BABA, BIDU, EEM, etc. 

"The trend is your friend." - Occam's Razor


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