Uncertainty Reigns

Uncertainty was the word of the day on Tuesday as the markets see-sawed (see chart from Marketwatch.com). However, after the drubbing of last week, momentum picked up late in the session supported by a drop in oil prices and an unexpected gain in new home sales.

On the other hand, continued lower consumer confidence figures kept a lid on advances. I suspect that some further sideways action will dictate trading in the near future until some catalyst can propel the major indexes higher again. In the absence of such a catalyst, we may be treading water for a while longer. Here’s how our Trend Tracking Indexes (TTIs) fared yesterday:

Domestic TTI: +1.09%
International TTI: -3.20%

Domestically, we’ve slipped back into the neutral zone and will hold our positions subject to our trailing sell stop points.

With energy prices being on the front burner, despite today’s pullback, I have added a position in that area last week, along with gold, which broke out to the upside but retreated today.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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