Despite a sharp drop after the market opening on Tuesday (see chart), the major indexes recovered and closed higher with solid gains. In the face of $123 crude oil, and predictions of prices moving into the $150 to $200 area in the next 6 to 12 months, the markets resisted any sell off attempts.
Our domestic Trend Tracking Index (TTI) broke out of the upper band of the neutral zone (+1.50%) again and sits now +1.64% above its long-term trend line. If we can stay above the +1.50% level for a couple of trading days, that will constitute a new domestic Buy signal.
In the meantime, our holdings in the Latin American markets as well as the Transportation Index have moved up nicely, and I will add a second increment. Some domestic no load funds have now crossed their own individual trend lines as well, which will bode well for this uptrend if a Buy signal is in fact generated.
The International TTI improved as well, but still remains below its trend line by -1.29%. I will keep you posted via this blog as to day-to-day changes.